Will the Steering Wheel Disappear? Autoliv & Tensor’s Foldable Wheel Signals Mass-Market Autonomous Shift

Is the era of the fixed steering wheel officially over? For years, Western automakers have flirted with no-wheel concepts for Level 5 autonomy, but the reality of the messy transition to self-driving demands a more pragmatic solution. Enter the collaboration between global safety giant Autoliv and the next-gen AI firm, Tensor, which just unveiled the world’s first production-ready foldable steering wheel at CES 2026. This isn’t just a neat trick for a concept car; this innovation, designed for the Tensor Robocar (slated for volume production in H2 2026), fundamentally redefines the trade-off between manual control and L4 freedom.

For investors and prospective EV buyers alike, this signals a major shift: physical hardware is finally starting to adapt to software-defined driving modes. The question for the West isn’t *if* autonomy will change interiors, but *how quickly* traditional suppliers will match this pace.

H2: From Cockpit to Cabin: The Business Case for a Retractable Wheel

The primary limitation of current autonomous vehicle design is the static steering wheel. It becomes a redundant obstacle, consuming valuable cabin real estate and constraining interior flexibility, especially as vehicles move toward Level 4 operation.

H3: Dual-Mode Functionality for Real-World Adoption

Tensor CEO Jay Xiao emphasized that while full autonomy is a breakthrough, many users still desire the option to take the wheel in specific scenarios. The Autoliv/Tensor solution perfectly fuses this desire for choice:

• Manual Mode: The wheel deploys traditionally, offering a familiar HMI (Human-Machine Interface).
• Level 4 Autonomous Mode: The wheel fully retracts, completely clearing the driver’s area to create usable personal space.

This flexibility is a direct nod to the current consumer sentiment, acknowledging that the L4/L5 transition will be gradual, not instantaneous. Preserving choice smooths the path to broader adoption.

H3: The Adaptive Safety Revolution: Dual Airbag Deployment

The most critical challenge when removing a steering wheel is airbag placement. Autoliv, as a top-tier safety supplier, addressed this with an ingenious, mode-adaptive system.

• Manual Driving: The traditional steering wheel airbag deploys in an accident.
• Autonomous/Retracted Mode: A secondary passenger airbag, integrated into the instrument panel, automatically activates.

This is expert-level engineering—safety systems are now evolving to match the vehicle’s operational state rather than following a single, fixed layout. This approach signals a new benchmark for safety compliance in mixed-mode vehicles. See our analysis on how Chinese EV safety standards are evolving alongside hardware innovation.

H2: Why This Matters to Western Automakers and Investors

While this collaboration is happening outside the traditional Detroit-to-Munich axis, its implications are universal. The fact that an established Tier 1 supplier like Autoliv is betting on this technology for a near-term production vehicle (H2 2026) validates the design direction for vehicle interiors globally.

For US/EU investors looking at the future competitive landscape, this development suggests that Chinese and US EV startups are pushing component innovation faster than established incumbents in certain areas. The focus shifts from *if* a car can drive itself to *how* the interior experience is optimized while it does.

• Interior Design Battlefield: Cabin space and flexibility are the new frontiers for premium EV features, a concept Autoliv notes has historically been constrained by fixed controls.
• Market Readiness: Unlike many futuristic concepts, the Tensor Robocar is explicitly targeted for volume production, putting this technology on the near-term roadmap, not just the auto show floor.

H2: Recommended Reading for the Autonomous Investor

To truly grasp the technological and societal currents driving this shift, we recommend:

The Future of Mobility: How Autonomous Vehicles Will Change Business, Society, and Our Lives

This development showcases a pragmatic path forward for autonomy—one that embraces dual control rather than demanding instant, total surrender. The foldable steering wheel autonomous future is closer than many analysts predicted, driven by component-level innovation.