Self-driving cars utilize an array of sensors, such as cameras, radar, and LiDAR, combined with advanced software algorithms to navigate. These sensors gather real-time data about the environment, enabling the vehicle to detect obstacles, lane markings, and traffic signals. The software processes this information to make instantaneous decisions, such as acceleration, braking, and steering, allowing the car to drive autonomously. Machine learning models are deployed to improve the vehicle's understanding of various scenarios, ensuring safe navigation and compliance with traffic laws.