Asian Tech Press (Jan 25) -- Cariad, Volkswagen's software subsidiary, and Bosch, an automotive parts supplier, reportedly entered into a partnership today to develop autonomous driving software for Volkswagen passenger cars.

The software will enable so-called "Level 2" autonomous driving, which includes "hands-free" driving in urban, rural and highway areas, as well as a "Level 3" system that will take over all driving functions on the highway.

The "Level 2" autonomous driving feature is expected to be available in Volkswagen vehicles by 2023. The companies also said the software and its components could later be used in cars from other automakers but didn't disclose a specific time frame.

This is the second major partnership announced by the two companies this year. Last week, the two companies said that they would set up a joint venture by the end of this year to provide battery production systems while also assisting battery manufacturers in scaling up and maintaining production sites.