The objective of Car2TERA is to develop emerging sub-THz (150-330 GHz) smart electronic systems based on latest semiconductor, microsystem and nanoelectronics technologies, and to implement TRL-4 demonstrators in two high-potential application scenarios: (1) a new class of compact, high-resolution, electronic-beam-steering short-range car radar sensors, with the primary application being in-cabin passenger monitoring (currently fastest growing car sensor market) for individually and real-time adjusted crash mitigation measures; (2) short-distance, high data-rate THz-over-plastic data links for telecommunication radio-access and backbone networks facilitating the data growth demanded by 5G and IoT. Car2TERA combines, for the first time, the results of recent achievements in semiconductor, micro- and nanoelectronics scientific projects, including the Graphene Flagship, an ERC and several EU collaboration projects, with the following emerging THz technologies: (1) 600-GHz-fmax SiGe monolithic-microwave integrated circuits (MMICs); (2) silicon micromachining for system integration, packaging and phased-array antenna front-end; (3) integrated MEMS reconfigurability; and (4) large-bandwidth, high-linearity graphene MMICs; (4) advanced signal processing including OFDM radar signals and AI sensor fusion. The consortium: Veoneer, world’s largest car safety equipment manufacturer; Ericsson, world leading in telecommunication systems; Infineon, world’s largest manufacturer of SiGe radar chip sets; the academic partners Chalmers and KTH, leading in MMIC design and micromachining/THz MEMS; and three SMEs leading in sub-THz technologies and 2D-materials. With European car module manufacturers holding a market share of 79% on car radars, and European semiconductor manufacturers 90% on SiGe car-radar chip sets, this project aims at extending Europe’s success story on advanced, smart electronic sensor systems into the sub-THz frequency spectrum and into new emerging applications.