Continental and Huawei have been working with a wireless communication technology called the Cellular Vehicle to Everything, or C-V2X, for autonomous drive applications.

The technology allows road users to communicate in LTE and in future, the 5G mobile network. It is also designed to connect vehicles with each other and with the infrastructure, according to Continental.

Using Huawei's prototype C-V2X module and infrastructure, the two companies tested cases such as emergency brake light and stationary vehicle warning earlier this week in Shanghai, according to the China Daily.

The average latency in communication was 11 milliseconds and throughout the tests nearly 100 percent of data packets were received, said Continental.

Besides C-V2X, Continental is also working to integrate and deploy other wireless technologies, including 5G, for advanced communications in the automotive industry, the report added.

Tier 1 suppliers across the world are working hard to establish relations with tech specialist and communications companies as they work on next generation autonomous vehicle and connectivity systems.