Advanced sensor systems and sensor fusion are key components in the safe progression from Advanced Driver Assistance Systems (ADAS) to fully Automated Vehicles (AV). Beyond current 24GHz and 77GHz radar sensors, the sub-terahertz frequency spectrum, 150-330GHz, opens many doors to new features within the ADAS and AV domains. This short-range, sub-THz frequency radar technology will significantly improve outdoor sensing including road condition monitoring and also enable emerging applications such as in-cabin sensing. Sub-THz technology also enables robust high-speed data links for wireless communication systems. Considering key RF system requirements for sub-terahertz radars in next generation smart automotive electronic systems. Hardware design challenges, technology choice, hybrid integration and the commercialization aspects of the technology.