Engineers at Jaguar Land Rover are developing 3D, "head up" technology that could project real-time safety alerts to drivers.
The car manufacturer is working with researchers from the University of Cambridge on the technology, it said in an announcement Tuesday.
The research is aiming to create an immersive display that would "closely match" real world experiences, which would in turn enable drivers to react to prompts and hazards in a more natural way.
If implemented, the display could provide drivers with information on lane departures, satellite navigation directions and road hazards.
"This program is at the forefront of development in the virtual reality space," the University of Cambridge's Daping Chu said in a statement.
"We're looking at concepts and components which will set the scene for the connected, shared and autonomous cars of the future," Chu, who is director of both the Centre for Photonic Devices and Sensors and the Centre for Advanced Photonics and Electronics, added.
As technology develops and vehicles become increasingly connected, manufacturers are working on a number of innovative systems to improve safety.
In March, for example, Volvo Cars announced it would be installing in-car cameras and sensors to check drivers for signs of intoxication and distraction.
The firm said the technology would be used to monitor drivers and, when needed, enable the car "to intervene if a clearly intoxicated or distracted driver does not respond to warning signals and is risking an accident involving serious injury or death."
Actions the car could take include limiting speed to slowing down and then parking the car in a safe place. Installation of the technology will start in the early 2020s.