As part of the UK Autodrive consortium, JLR cars are driving a challenging half-mile (0.8km) route on Coventry's roads in a "mixed use" area. Although a safety driver is on board to take over in an emergency, the cars rely on their own sensors to react to traffic, pedestrians and signals, with the driver not touching the controls in a "hands-off, feet-off" scenario.
The tests are designed to help future autonomous vehicles replicate human behaviour and reactions when driving.
Britain taking a lead in driverless technology could deliver a massive boost to the country's economy. The worldwide value of autonomous systems has been estimated at £900bn (NZ$1.744 trillion) by 2025.
A study by the Society of Motor Manufacturers and Traders, the industry trade body, has calculated that 320,000 British jobs could be created by 2030 if the UK establishes itself as a leader in the field. The Government announced policies in last year's Queen's Speech that were aimed at minimising red tape for self-driving cars.
Britain already has a head start over many nations in autonomous vehicles because the UK never ratified the Vienna Convention. This legislation requires that "every driver shall at all times be able to control his vehicle". The UK therefore does not have to rewrite the law in order to test self-driving vehicles on public roads.
As part of the UK Autodrive group, JLR is working on self-driving systems and Ford is developing technology that will allow cars to communicate with one another. This will mean that, if one car slams on the brakes, its computers will warn the vehicles behind it about the danger.
In February and March, Nissan showcased one of its autonomous electric Leaf cars on roads around London's ExCel centre. It was the Japanese company's first European test of the technology.
Specially designed "pods" have also been tested on UK roads, but the JLR tests - which are scheduled to run into 2018 - are the first time a traditional car built by a UK manufacturer has hit the public highway.
A fortnight ago Google's Waymo unleashed its first autonomous cars without a back-up driver at the wheel. The tests in Arizona involved Waymo employees sitting in the rear seats with no access to the steering wheel or pedals, but within reach of an emergency stop button.
Such developments underline the race to perfect self-driving technology. Mike Hawes, the chief executive of the SMMT, said: "Britain is fast establishing itself as a centre of excellence for this new technology. Industry and government investment is delivering public trials of self-driving vehicles on UK roads and, although fully self-driving cars are still some way off, this technology represents a huge opportunity for the UK."
News that driverless cars are regularly travelling on UK roads comes as Volkswagen revealed it is investing €10bn (NZ$17 billion) with local partners to develop electric vehicles in China.
The move follows similar investments by Ford, Nissan-Renault and Tesla. The Beijing government is seeking to encourage car companies to invest in battery vehicles there, in the hope that China, the world's largest car market, will become a centre for the emerging technology.