This will be made possible by a new 'eyes and ears' technology developed by researchers from Curtin University in Perth.
The technology comprises a dozen different sensors installed in an average car, paired with an algorithm that processes the large amount of data received.
This creates meaningful information which tells the car the nature and location of obstacles, researchers said.
Associate Professor Dr Ba Tuong Vo, from the Department of Electrical and Computer Engineering, said this autonomous car, created through a joint project between Curtin, Daimler (the research arm of Mercedes Benz) and Ulm University in Germany, would be commercially viable because it does not need to be connected to internet and can be produced at a low cost.
"At the moment our autonomous car can drive in a straight line and sense what is around it. The next step is to give it a 'brain' or the computer systems which can tell how to react to what is around it and also what to do when an object comes in its path.
Although this step means an affordable autonomous car is certainly on its way, Vo believes the car will probably take another decade to develop, with legislation around car insurance being one of the hardest obstacles to overcome.
"There are some interesting issues that will have to be dealt with moving forward, including what decision a car should make when it senses a crash, and also, whose fault an accident is - the car, the sensors or the driver," Vo said.
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