Photo of 2014 Mercedes-Benz E-Class sedan courtesy of MBUSA.

Photo of 2014 Mercedes-Benz E-Class sedan courtesy of MBUSA.

The next-generation Mercedes-Benz E-class sedan will be able to steer itself at highway speeds, which Daimler AG has demonstrated in testing, reports Bloomberg.

With the model, which goes on sale in March 2016, drivers will feel the steering wheel move in their hands.

The E-Class, which competes with the BMW 5-Series, Audi A6 and Lexus GS, is the company's flaship luxury sedan. Offering options more advanced than those in the flagship S-Class shows how much Daimler is raising the stakes as they try to reclaim the top spot in high-end cars. Audi has already sent an unmanned RS7 around a track at racing speeds.

During a test drive in Germany, the sedan navigated around bends in the road and automatically adjusted the speed according to street signs. If the car detects that the driver doesn’t have their hands on the steering wheel, the steering aid system switches on a warning light, then beeps, then turns itself off, forcing the driver to retake the wheel.

Mercedes-Benz will release more details in July, spokesman Christian Bokich told Automotive Fleet.