2019 Autonomous Vehicles Readiness Index

Assessing countries’ preparedness for autonomous vehicles

KPMG International

kpmg.com/avri Quick reader guide

The Autonomous Vehicles Readiness Index This report uses the term ‘autonomous (AVRI) is a tool to help measure 25 countries’ vehicles’, abbreviated to AVs, to refer to the level of preparedness for autonomous technology used both within vehicles and vehicles. It is a composite index that externally, such as digital networks and road combines 25 individual measures from a infrastructure. It also uses AVs to refer to range of sources into a single score. More vehicles that can do everything a traditional information on the results, methodology and vehicle does without human intervention, sources used is in the Appendix. sometimes described as ‘level 5 automation’, where vehicles are fully self-driving and The intended core audience for the AVRI is the human driver becomes a passenger. public sector organizations with responsibility The terms AV and driverless car are used for transport and infrastructure. It should interchangeably, although this report also also be of interest to other public and private covers autonomous buses and trucks. sector organizations that are involved with, or make use of, road transport.

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© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. © 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services andis aSwiss entitywith which the independent member firms ofthe KPMG network are affiliated.

Index results 2019 25 24 23 22 21 20 16 15 14 13 12 19 18 17 10 11 9 8 7 6 5 4 3 2 1 Rank 2018 n/a n/a n/a n/a n/a 20 16 15 13 12 14 19 18 17 10 11 7 9 8 6 5 4 3 2 1 Brazil India Mexico Russia Hungary China Czech Republic Spain France Austria Australia Israel South Korea Canada New Zealand Japan EmiratesUnited Arab Germany United Kingdom Finland Sweden United States Norway Singapore The Netherlands 2019 Autonomous Vehicles Readiness Index Country 2019 score 14.41 14.46 15.50 20.53 20.69 22.28 22.48 22.58 23.75 24.32 25.05 18.46 18.85 19.60 19.79 19.80 19.87 21.15 21.58 19.01 11.99 6.41 6.87 8.55 7.73 3 Contents

05 Foreword 06 Introduction Richard Threlfall on how the How governments can harness AVRI has evolved and what AV AVs’ ability to increase road safety, adoption will mean for society. improve public transport and freight, and even reshape cities.

2018 Executive 08milestones 10 summary Last year’s key events in the Overview of the top 5 countries, development of AVs. methodology updates and key actions countries can take.

National The road 12profiles 40 ahead Policies, events and companies What governments can do next, in each of the 25 countries with and how KPMG’s member firms commentary from KPMG’s can help. national AV experts.

42 Appendix: Results and methodology Detail on the data and methodology used to build the AVRI.

A year ago, our firstAutonomous Vehicles Readiness Index sought to raise awareness of the transformational social and economic benefits that autonomous vehicle (AV) technology could offer society.

It felt like a conversation in its infancy. Since then, through 2018, we have seen a huge acceleration in investment in AV technology, in policy adoption by governments to encourage AVs, and in media coverage of the topic.1 Countries and states including the Netherlands, the United Kingdom, Australia, France and California have passed or are passing legislation opening AVs’ access to public roads. Trials are underway from Singapore to Madrid to Gothenburg.

To help maintain the momentum, we published this second edition of the index. It adds five new countries (Czech Republic, Finland, Hungary, Israel, Norway); new measures including consumer opinion on AVs; and provides greater insights into individual countries, drawing on the expertise of colleagues in KPMG’s national firms.

The Netherlands and Singapore again claim first and second place, respectively; the former benefiting from its European leadership in transport public policy, the latter from its brilliance in attracting investment from global technology leaders.

But many of the overall scores are very close and there are numerous opportunities, identified in this report, for countries to make significant progress. Those that did would rise quickly in the rankings. The most successful countries have a policy framework that enables innovation, a strong track record in technology, high-quality road and digital infrastructure, and populations that are eager to adopt new technologies.

I continue to believe that the social benefits of AV adoption will be enormous in reducing road deaths, improving accessibility for the young, old, disabled and those in remote communities, and driving economic growth. By sharing the best national achievements, I hope the AVRI will continue to accelerate the pace of this revolution.

Richard Threlfall Global Head of Infrastructure KPMG International @RThrelfall_KPMG

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Governments around the world are working on how Freight is set to be another early adopter of AVs. they can deliver AVs’ anticipated societal benefits. The Netherlands, for example, is working with These include the prospect of much-improved road Germany and Belgium on establishing ‘truck safety, more efficient public transport and freight platooning’ — where one human-driven vehicle services, and cleaner cities with more room for leads a convoy of autonomous ones — on major people and green spaces. There are also potential roads. In the US, it is predicted that soaring challenges to mitigate, including big changes increases in delivery vehicle miles traveled (VMT) to labor markets and industries including motor could reach 78 billion VMT per year by 2040, to insurance, privacy and cybersecurity risks, and meet the consumer demand for same-day or greater suburban sprawl. same-hour delivery.6 There is also strong potential for AVs in closed environments such as ports. Safety Such use will help combat the increasing scarcity and cost of drivers in some countries, with the 1.35 million people were killed on the world’s roads median salary for an American driver on a national, in 2016, up from 1.25 million in 2013, according irregular route having risen 15 percent since 2013.7 to the World Health Organization,2 with studies suggesting that human error causes at least As a possible result, some fear a rapid disappearance nine in 10 accidents.3 Removing human error risk of driving jobs, which are a major source of by moving to AVs should therefore deliver an employment with 4.8 million people in the 28 enormous reduction in vehicle-related deaths — European Union (EU) countries alone.8 However, something that is important to remember, in light of there are reasons to expect that the replacement of the first death caused by the testing of AVs, as well professional drivers with technology will be gradual, as one from the use of a partially autonomous car, with software initially taking over some elements of in 2018.4 driving but with people still required for the likes of close maneuvering. Vehicle makers looking to reassure the public about AVs could follow the aviation industry, where aircraft makers have embedded safety in The future of cities their processes. Airlines share information and AVs should lead to much cleaner and efficient use learn from accidents on a no-blame basis. Modern of roads, as well as making them safer. Much of passenger aircraft are regularly flown by autopilot this will result from the shift from fossil fuels to software, albeit with the supervision of human electric vehicles (EVs), with most AVs expected to pilots — and in 2017, there were no fatalities at all in run on electricity. In September 2018, the United commercial passenger jets.5 Kingdom joined Canada, China, Finland, France, India, Japan, Mexico, the Netherlands, Norway Public transport and freight and Sweden in pledging that at least 30 percent of new vehicles sold will be EVs by 2030.9 Norway Despite the focus on when driverless cars will has already exceeded this target, and enters the be available, autonomous minibuses are already AVRI this year in third place, partly as a result of its providing passenger services in countries including advanced adoption of EVs. Norway, Sweden and France, and AVs are likely to be as important in transforming public transport as One of the greatest benefits in efficient road use they will be for private cars. They will allow public will come from public authorities being able to track transport providers to move from fixed-route, and optimize the flow of vehicles. This will require fixed-timetable bus services to on-demand standardized protocols to allow data to travel to and autonomous alternatives, which would efficiently from vehicles. To comply with privacy laws such as and effectively take people from door to door. the EU’s General Data Protection Regulation, which

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© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. came into force in May 2018, personal data will need to be transport to deliver its goods and move its staff or clients. separated from that needed to guide vehicles. The data- There are likely to be some surprising industry-specific sharing environment is also important as it enables greater impacts (see box). collaboration between government and private industry on AV development, so this year’s AVRI adds a new measure Insurance may see particularly big changes. A 2014 assessing this. actuarial analysis by KPMG in the US suggested that the personal automotive insurance sector could shrink by As well as making more efficient use of roads, AVs are likely 40 percent within 25 years, with the number of accidents to change city landscapes — although this might take different per vehicle dropping by 80 percent.11 In 2017, the Bank of directions depending on how usage develops. If AVs lead to England predicted a fall in motor insurance premiums of less car ownership, less urban space will be needed for roads, 21–41 percent by 2040.12 parking and garaging, potentially allowing higher population densities and more green space. If people prefer to own AVs There are many uncertainties over the effects of AVs, then they may choose to live further from work, leading to both in time-scale, degree and direction. What does more low-density suburbs, more road traffic and a need for seem certain is that a wide range of organizations, both daytime parking for their AVs, although this could be on the government and private-sector, will be profoundly changed edge of cities rather than next to offices.10 by their adoption. For the countries that can manage these changes, AVs offer benefits on safety, efficient road-use, Insurance and other industries better public and freight transport, and the chance to reshape cities around humans rather than vehicles. As AVs will have effects far beyond the road transport sector, the results of the second edition of the AVRI show, some not least because almost every organization makes use of countries are already well on their way.

Examples of how AVs may affect specific industries —— Policing: fewer resources may be needed to police roads with AVs programmed to obey traffic laws.

—— Healthcare: fewer traffic accidents may mean less demand for emergency surgery and fewer organ donors. AVs may make it easier for older and infirm people to travel to appointments, allowing greater centralization of services.

—— Air and rail: fewer passengers on some routes if AVs allow users to relax or sleep their way to long-distance destinations.

—— Media and advertising: AV users freed from driving could turn their attention from audio to video, written word and social media; advertising could be targeted by location, potentially subsidizing the cost of travel.

—— Power generation: EVs including AVs, will increase demand, but ability to choose when to charge at home could boost variable-output renewable power.

—— Power grids: home charging will require strengthened local grids, but smart control of when to charge as well as use of plugged-in vehicles as batteries could smooth demand.

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Norway legalizes testing of AVs on public roads, with driverless minibus services Chinese government allows ﬁrst ofﬁcial starting in several locations tests of AVs on public roads.14 later in the year.13 German coalition government agreement includes plans to legislate for AVs by 2021.

Dutch infrastructure minister announces legal framework for AVs, including equivalent of driving license for self-driving vehicles and work on truck platooning.15 Death of pedestrian in Arizona in the United States (US) during an AV trial.16

i California Department of Motor Vehicles lifts requirement that AVs must have a human driver to take over in emergencies.17

European Commission transport commissioner announces plans for European rules governing AVs and investment in road and telecoms networks.18

Japanese government plans to start tests of AVs on public roads with goal of offering self-driving car service for 2020 Tokyo Olympics.19

Ford creates new AV division with plan to invest US$4 billion by 2023.20 Uber ends development of self-driving trucks to focus on cars.21 UK Parliament passes legislation meaning insurers will be liable for damage caused by AVs when in o self-driving mode.22 Waymo starts charging passengers in Russian company Phoenix, Arizona, for rides in its AVs.24 Yandex launches what Australian government establishes an it claims is the ﬁrst Ofﬁce of Future Transport Technologies autonomous to prepare for AVs.25 ride-hailing service in Europe, in Innopolis, and later in Skolkovo.23 A Swedish start-up and German logistics company announce they o expect regulatory Ford, Walmart and approval shortly to run delivery start-up driverless trucks on Postmates announce public roads.27 US trial using AVs to deliver groceries.26

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This edition of the AVRI assesses 25 countries on 25 different variables, organized into four pillars. o o Bo ii o o Four of the variables are scored for this index by KPMG International and ESI ThoughtLab; one uses ooo a consumer survey conducted for this report; and the rest use existing research by KPMG and other organizations. Full details are in the Appendix. — A new measure on government data o i o i sharing, reflecting the importance of this in oo ioio the development of AVs, is led by the UK (7th overall). Countries like the Netherlands and Singapore could far outpace other countries if they focused on Pillar 2; in Page 14 io Page 15 — Several countries enjoy a dynamic business ecosystem with a focus on AVs, but Israel particular, investing in AV-related firms and R&D, industry — The AVRI’s leading country is working with neighbors — With a leading university, Singapore has created a test partnerships, and an innovation-friendly business to adopt AV technology for freight, with a plan to town for driverless vehicles complete with traffic lights, (14th overall) gains top scores in the AVRI’s launch platoons of more than 100 driverless trucks on bus stops, skyscrapers and a rain machine to recreate technology and innovation pillar through the environment. major routes from Amsterdam to Antwerp and its extremely wet tropical weather. outstanding performance of its sector. Rotterdam to the Ruhr valley. — Next year, it will introduce self-driving minibuses in — The AVRI’s newly introduced consumer oi i i oo — It is introducing new laws that will encourage AVs, several areas, including a university campus — an survey measuring enthusiasm for AVs is led something also pursued by the UK, Australia and approach already taken in Norway and France. by India (24th overall) and Mexico (23rd ioio o o o ii France among others. — Singapore, along with Hungary, leads a specific overall), suggesting that countries currently oi iiio i — The Dutch government is taking an active role in AV measure on having a single government organization lacking good road transport may be Countries that are leading in technology and innovation — safety and legal issues, with the infrastructure that deals with AVs, which improves AV coordination particularly keen to adopt AVs. minister announcing a ‘driving license’ for self-driving and reduces confusion around who does what. Germany, Israel, Japan, Norway and the US — have cars in a March speech. middling scores in their AV regulatory environment and institutions. Adapting and revisiting regulations and establishing an AV-focused institution could take these countries to the top of the rankings.

o oi o o i i o o i oi ii io Six of the 10 countries that lead the world on infrastructure readiness — Australia, Austria, Japan, South Korea, Sweden, and the UAE — do not feature in the top 10 for the policy/legislative environment. Since these countries have some of the more capital-intensive parameters like network connectivity, 4G coverage, and roads in place, to improve their positions they could work on establishing new AV regulations and institutions.

o o o i o i i i o Page 17 Page 18 ii oi oo o Page 16 i — The country legalized AV testing on public roads in — Individual states including Ohio, — The country’s cutting-edge work Countries with the lowest overall scores like Brazil, India, January 2018, giving clarity for providers and leading to Michigan and Massachusetts are on freight includes a road that Mexico and Russia have the highest scores in our new trial bus services in several locations. working to encourage AV charges electric trucks as they survey testing respondents’ willingness to ride in an AV. development and adoption by drive over it and pilot use of an — As a result of signiﬁcant tax breaks, 40 percent of new This is good news in the long term for AV manufacturers cars sold in Norway are electric, many having some opening access to roads and AV truck to link two logistics autonomous functionality. setting up a single coordinating centers. given the size of these consumer markets, but only if organization. governments actively develop other pillars.

10 2019 Autonomous Vehicles Readiness Index

This edition of the AVRI assesses 25 countries on 25 different variables, organized into four pillars. o o ii o o Four of the variables are scored for this index by KPMG International and ESI ThoughtLab; one uses ooo a consumer survey conducted for this report; and the rest use existing research by KPMG and other organizations. Full details are in the Appendix. — A new measure on government data o i o i sharing, reflecting the importance of this in oo ioio the development of AVs, is led by the UK (7th overall). Top ranked countries could far outpace others if they focused on Pillar 2 (technology and innovation); in particular, Page 14 io Page 15 — Several countries enjoy a dynamic business ecosystem with a focus on AVs, but Israel investing in AV-related firms and R&D, industry — The AVRI’s leading country is working with neighbors — With a leading university, Singapore has created a test partnerships, and an innovation-friendly business to adopt AV technology for freight, with a plan to town for driverless vehicles complete with traffic lights, (14th overall) gains top scores in the AVRI’s launch platoons of more than 100 driverless trucks on bus stops, skyscrapers and a rain machine to recreate technology and innovation pillar through the environment. major routes from Amsterdam to Antwerp and its extremely wet tropical weather. outstanding performance of its sector. Rotterdam to the Ruhr valley. — Next year, it will introduce self-driving minibuses in — The AVRI’s newly introduced consumer — It is introducing new laws that will encourage AVs, several areas, including a university campus — an survey measuring enthusiasm for AVs is led something also pursued by the UK, Australia and approach already taken in Norway and France. by India (24th overall) and Mexico (23rd oi i i oo ioio France among others. — Singapore, along with Hungary, leads a specific overall), suggesting that countries currently o o o ii oi — The Dutch government is taking an active role in AV measure on having a single government organization lacking good road transport may be iiio i safety and legal issues, with the infrastructure that deals with AVs, which improves AV coordination particularly keen to adopt AVs. minister announcing a ‘driving license’ for self-driving and reduces confusion around who does what. Countries that lead in technology and innovation tend to cars in a March speech. have mid-level scores in their AV regulatory environment and institutions. Adapting and revisiting regulations and establishing an AV-focused institution could take these countries to the top of the rankings.

o oi o o i i o o i oi ii io Six of the 10 countries that lead the world on infrastructure readiness — Australia, Austria, Japan, South Korea, Sweden, and the UAE — do not feature in the top 10 for the policy/legislative environment. To improve their overall ranking they could work on establishing new AV regulations and institutions.

o o o i o i i i o Page 17 Page 18 o Page 16 i ii oi oo — The country legalized AV testing on public roads in — Individual states including Ohio, — The country’s cutting-edge work In general countries with the lowest overall scores have January 2018, giving clarity for providers and leading to Michigan and Massachusetts are on freight includes a road that the highest scores for positive consumer sentiment about working to encourage AV charges electric trucks as they trial bus services in several locations. AVs. These countries would rise quickly in the rankings if — As a result of signiﬁcant tax breaks, 40 percent of new development and adoption by drive over it and pilot use of an cars sold in Norway are electric, many having some opening access to roads and AV truck to link two logistics governments actively developed other pillars. autonomous functionality. setting up a single coordinating centers. organization.

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Policy and Technology and Infrastructure Consumer legislation innovation acceptance

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© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 1 The Netherlands Policy and Technology and Consumer Infrastructure legislation 5 innovation 10 1acceptance 2

The Netherlands retains its of self-driving vehicles) was approved Electric vehicle charging stations — score by country (top 5) lead by doing many things by the House of Representatives in April 2018 and the Dutch Senate in The Netherlands consistently well, including September 2018. It allows experiments 1.00 investigating AVs’ use in with AVs on public roads without drivers Norway in vehicles, although they must be 0.52 freight and logistics and 29 monitored remotely. South Korea passing new legislation. 0.26 The Netherlands are also preparing a China The Netherlands, which again Driving License for a Vehicle. This is 0.22 leads the AVRI, is an example of being developed in cooperation between Germany how to ready a country for AVs by the Dutch Vehicle Authority (RDW), the 0.16 performing strongly in many areas. main road authority (Rijkswaterstaat) Source: International Energy Agency, 2017 It leads the index’s infrastructure and the central office for driving exams pillar, is ranked second on consumer (CBR). The approach focuses on the acceptance and is fifth on policy and extent to which a vehicle can produce Consumer adoption of latest legislation. The country also scores safe and predictable automated technology — score by country (top 5) highly on many individual measures, driving behavior that aligns as closely The Netherlands as possible to human performance including supportive regulations, road 1.00 infrastructure quality, exposure to AV in an open traffic system. Finally, the Sweden Netherlands are working on a “Vehicle testing and market share of EVs. 0.97 Safety & Security Framework (VSSF)” United States This balanced approach is shown in to be able to assess the robustness of 0.97 the way the Dutch government is in-vehicle software. considering the potential to use AVs in United Kingdom freight, while working to improve safety As well as freight and private cars, 0.96 Singapore and enhancing the legal framework. Dutch companies are working on 0.92 the potential for AVs in private On freight, it plans to have dozens of industrial environments with foreign Source: World Economic Forum, Global Competitive driverless delivery trucks operating closely manufacturing and logistics firms.30 Such Index 2018 together on international highways. In a uses may precede AVs on urban Dutch March 2018 speech, Dutch infrastructure roads, which are much busier than in the The Netherlands is minister Cora van Nieuwenhuizen said US and other countries: “We have a lot spreading its AV bets the country will work with Germany of bicycles,” points out Stijn de Groen, across projects including and Belgium to introduce ‘truck Manager Digital Advisory, Executive for platooning’ along the ‘Tulip corridors’ from Automotive, KPMG in the Netherlands. truck platooning pilots, Amsterdam to Antwerp and Rotterdam to “In urban, crowded areas it will be very public transport in the Ruhr valley, with the aim of enabling difficult to start autonomous driving.” airports and transporting convoys of at least 100 trucks and As a result, it may make more sense to eventually self-driving vehicles at night.28 keep transport modes separate rather containers in harbors. She also said that she would work to than integrating AVs to work there. connect vehicles using 5G technology — Loek Kramer and install 1,200 smart traffic lights. “The Netherlands is spreading its AV Sector Lead for Automotive, This would build on the Netherlands’ bets across projects including truck KPMG in the Netherlands existing leading status on availability of platooning pilots, public transport in EV charging stations, something also airports and transporting containers recognized in this index. in harbors,” adds Loek Kramer, Sector Lead for Automotive, KPMG in the The ministry also announced a legal Netherlands, summing up the Dutch framework for autonomous driving. approach of looking for opportunities The Experimenteerwet zelfrijdende auto to use AVs across road transport, (law governing the experimental use rather than just for cars.

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The government is “The government is very proactive in ii o o o to positioning the city-state as thinking about the future of mobility. It is seriously investigating the inaoe a center for AV development possibilities as well as preparing for with the deployment of a a regulatory environment that will una facilitate a future that is autonomous,” simulated urban test-bed says Satya Ramamurthy, Partner, Head Austia and plans for driverless of Infrastructure, Government and buses. Healthcare, KPMG in Singapore. e ealand Singapore ranks relatively low on Singapore leads the policy and nited Aa miates technology and innovation, at 15th of legislation and consumer acceptance 25. Ramamurthy says Singapore’s pillars, and is second only to the ouce Intenational 2019 lack of conventional automotive Netherlands on infrastructure. Its manufacturing may prove to be a government is working hard to strength in developing EVs and AVs, consolidate the city-state’s position as iii o io oi as they use a substantially different a center for AVs. It opened the Centre i o o to set of components. This seems to of Excellence for Testing and Research be validated by UK-founded home inaoe of Autonomous Vehicles at Nanyang appliances manufacturer Dyson’s Technological University (CETRAN) in announcement in 2018 that it would oa November 2017,31 which includes bus open a new factory in Singapore stops, traffic lights, skyscrapers, hills focused on building electric vehicles, Austalia and a rain-making machine to allow with a prototype expected in 2020. realistic testing. Data gathered from Dyson will also move its corporate e ealand this facility has assisted the government head office to the city-state, although with developing Technical Reference inland much research and development work 68 (TR 68), which is a set of national will stay in Britain.33 Ramamurthy standards aimed at promoting the safe adds that the relatively low number of ouce A loal onnectiit Index 201 deployment of fully driverless vehicles electric charging points is presently in Singapore. Additionally, CETRAN a weakness, but that electricity is collaborating with The Netherlands providers and others are planning to The government is very Organisation for Applied Scientific install more of these. Research (TNO) on accelerating the safe proactive in thinking about the future of mobility. It introduction of AVs in both countries. Singapore taxes private cars heavily, which provides a way to promote is seriously investigating Singapore has also announced that AVs — at a cost. “Effectively the three areas, Punggol, Tengah and the possibilities as well as pricing is done to discourage people the Jurong Innovation District, will preparing for a regulatory from driving,” says Ramamurthy. use driverless buses and shuttles for “That brings with it a whole set of environment that will off-peak and on-demand commuting opportunities.” At present, around facilitate a future that is from 2022. In November 2018, a bus two-thirds of the price of a car is tax. operator announced a year-long trial autonomous. “There is a lot of policy room for the of a self-driving shuttle service at the government to do things to promote National University of Singapore’s Kent — Satya Ramamurthy adoption, should it wish,” he says. Ridge campus, starting in March 2019 Partner, Head of Infrastructure, and operating on actual roads, although Government and Healthcare, it will only carry passengers after initial KPMG in Singapore tests are complete.32

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Following the legalization 2019. Norway has a specialist supplier iii o ooi in this area, Applied Autonomy.38 Such o o to of AV testing in January, work is reflected in Norway’s strong inland several cities now have performances in both the technology driverless minibus services and innovation pillar, where it is oa second, and consumer acceptance, and Norway is also working where it is third. Isael on truck platooning. Ståle Hagen, Director, Head of eden On 1 January 2018, Norway legalized Transport and Mobility, KPMG in AV testing on public roads,34 and Norway, says the bus tests involve nited tates operators have started small-scale a variety of environments, including autonomous bus services as a business parks, urban streets and ouce old conomic oum etoed Readiness result. In May, a Stavanger transport even a service from a shopping center Index 201 provider gained the right to run to a beach.39 “The feedback on AV driverless minibuses, and from June technology has been quite positive. o i o to December 2018 it ran a free service Passengers are not afraid of using this o to 35 in Forus. However, initial regulations kind of transport,” he says. Familiarity oa meant there was always an employee is developing for another reason: “Fifty on-board who could apply a brake, percent of all the cars sold in the Oslo eden only six passengers were allowed region are now electric and these cars and the maximum speed was 7.5mph are prepared for autonomous driving.” he ethelands 36 (12kph). Norway has by far the highest market hina penetration of EVs in the index, Ruter, the mass transit provider for contributing to its second place in Oslo, announced in October 2018 nited indom it is starting similar tests with a the technology and innovation pillar. Danish company, with the aim of Ketil Marcussen, Partner, Infrastructure ouce Intenational ne Aenc Global EV having 50 such minibuses in use Sector, KPMG Norway, says this is due outlook 2018. by 2021.37 Elsewhere, the national to generous tax breaks, exemptions road administration has been testing from road tolls and parking charges, automated truck platooning in the access to bus lanes, free charging The feedback on AV north of Norway, and pilots of stations and the country’s cheap technology has been autonomous taxis are set to start in home electricity. quite positive. Passengers are not afraid of using this kind of transport. Fifty percent of all the cars sold in the Oslo region are now electric and these cars are prepared for autonomous driving. — Ståle Hagen Director, Head of Transport and Mobility, KPMG in Norway

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The US is home to advantage for suppliers according to i o ioio o Ted Hamer, Managing Director and o to the world’s leading AV Head of Mobility, KPMG in the US. “If nited tates companies and a lot of one state is really tight in its restrictions testing work, but the lack of and another isn’t, you have the ability Isael to adapt and to move around,” he says, a strong national approach whether for testing, manufacturing eden means individual states or deployment. Arizona had broader eman have to work hard to attract rules on AVs, leading to it being used for several pilot projects, although it AV businesses. has tightened these since the Uber he ethelands accident in May. The United States (US) is home to ouce old conomic oum etoed Readiness companies that lead the world in AV Hamer adds that some states do Index 201 development, while the country’s an excellent job of supporting AV mainstream vehicle makers are development in a joined-up fashion, Efficiency of legal system in challenging working hard to establish AV fleet and in the way some countries do at regulations — score by country to ride-hailing services. This contributes national level. In May 2018, Ohio’s inland to strong US performance in the outgoing governor John Kasich 1.00 technology and innovation pillar, where signed an executive order opening AV nited tates it is third. It moves from third to fourth testing on the state’s roads, one of 0.99 overall as a result of Norway joining a number of projects coordinated by e ealand the AVRI, and scores less well on DriveOhio, a one-stop shop launched 0.87 infrastructure, where it is eighth, and in March.41 The Michigan Economic eman policy and legislation, where it is ninth. Development Corporation has taken 0.87 advantage of the state being home to he ethelands The US Department of Transportation the biggest vehicle manufacturers,42 0.84 published Automated vehicles 3.0 while Massachusetts has successfully ouce old conomic oum etoed Readiness detailing its approach to AVs in October Index 201 encouraged adoption of EVs through a 2018.40 The report’s principles include 2017 law.43 prioritizing safety; remaining technology neutral; preparing for automation The Virginia Department of There is recognition through guidance and pilot programs; Transportation's (VDOT) also launched that states have to start and protecting and enhancing freedoms program to help guide the department laying the groundwork enjoyed by Americans — such as in the deployment of AV related driving their own vehicles, emphasizing technologies and initiatives.44 for connected vehicles that AVs will operate alongside human- and the infrastructure driven motorized vehicles and other He adds that a year ago, many states that underlies them, and road users. were focused on attracting AV testing work, but this has developed: “There understand where AVs The document also says the is recognition that states have to start are going to be deployed, department “will encourage a laying the groundwork for connected whether it’s urban consistent regulatory and operational vehicles and the infrastructure that environment” across the US. underlies them, and understand where environments or more in However, states and cities have AVs are going to be deployed, whether freight and logistics. significant control of transport work, it’s urban environments or more in and differences in approach can be an freight and logistics.” — Ted Hamer Managing Director and Head of Mobility, KPMG in the US

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Sweden trials electric- January 2018, which is free to use People and civil society adoption of new 46 technologies — score by country (top 5) charging roads, AV trucks and has an emergency human driver. In September 2018, the agency Sweden and driverless buses, while gave Swedish vehicle maker Volvo 1.00 working on revamped permission to begin real-world tests of The Netherlands its self-driving cars in the Gothenburg 0.99 47 legislation for 2019. area. AV truck maker Einride and Norway German logistics group DB Schenker In April 2018, Sweden opened what 0.96 have been piloting use of a 7.5 tonne is believed to be the world’s first Germany electric AV truck between two logistics electric-charging road, a 2km stretch 0.93 centers since November 2018, and near Arlanda airport. An electric truck United Kingdom hope to gain regulatory approval for its 0.92 belonging to PostNord, the Swedish- use on public roads in January.48 Danish postal company, uses it to Source: KPMG International, 2019 recharge automatically while moving “There is a very good attitude from law- between the airport and a logistics makers and policy-makers in Sweden,” Infrastructure quality for logistics and center 12km away. The road joins says Christoffer Sellberg, Head of trucking — score by country (top 5) another recharging pilot, which uses Automotive, KPMG in Sweden. “They overhead cables on a motorway near Germany believe that AVs will improve traffic 1.00 Gävle, both supported by the Swedish safety, contribute to the efficiency of Transport Agency.45 Japan the transportation system and be a part 0.93 of Sweden’s sustainable agenda.” Sweden is second only to Norway in Sweden 0.92 adopting EVs, which means developing He adds that Sweden’s reputation The Netherlands infrastructure that will be used by AVs. for innovative technology is a 0.90 But its government is also undertaking major strength, as well as having Austria direct measures, with legislative excellent road and mobile network 0.88 changes likely in July 2019 that will infrastructure. These factors are allow AVs on public roads and tests recognized in the AVRI, with the Source: World Bank Logistics Performance Index, 2018 without human drivers. country among the highest-rated for government readiness for change, The transport agency has already AV company headquarters, capacity Policy-makers believe permitted small-scale AV pilots. These for innovation, road infrastructure for include a driverless bus service that that AVs will improve logistics, civil society technology use started running on 1.5km section of traffic safety, contribute and consumer adoption of technology. public road in northern Stockholm in to the efficiency of the transportation system and be a part of Sweden’s sustainable agenda. — Christoffer Sellberg Head of Automotive, KPMG in Sweden

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Finland is focusing on driverless bus services in 2021.52 Efficiency of legal system in challenging getting AVs to work in Meanwhile, local AV company Sensible 4 regulations — score by country to is developing automated minibuses that inland winter conditions and work in harsh Finnish winters. It recently 1.00 automated bus services — partnered with Japanese designer Muji nited tates to develop Gacha, an all-weather AV bus 0.99 and is repainting the yellow that also aims to look elegant.53 e ealand lines on its roads to an AV- 0.87 Finland, a new entrant to the AVRI, friendly white. eman scores well on having supportive 0.87 regulations, its judicial system, the Finland is exploiting its cold climate he ethelands number of AV companies and the through research on how AVs can 0.84 availability of the latest technologies, handle icy roads and tracks. In ouce old conomic oum etoed Readiness although it is among the lowest for Index 201 December 2017, government research investments. “Finland has a positive legal organization VTT showed its robot and regulatory environment. The traffic car Martti driving autonomously on a iii o ooi safety authority is quite permissive, o o to snow-covered road, and the project granting permits for trials to anyone who team has since added 5G technology inland is interested in experimenting with AVs,” to the vehicle.49 Future work will says Henry Beniard, Global Strategy include off-road driving on tracks and oa Group, KPMG in Finland. “The entire road at night. Other research includes network is available for experimentation.” Isael Swedish truck maker Scania trialing truck platooning in icy conditions, He adds that the government has eden and a 5G network established in the recently passed two new laws that northern town of Oulo that allows enable AVs. The Transport Service Law nited tates organizations including VTT to test opens taxis to competition, allowing applications such as AVs.50 ride-hailing services to gain access ouce old conomic oum etoed Readiness from 2020, and permits someone Index 201 Driverless minibuses are a priority to control a vehicle remotely.54 The in Finland, with Helsinki’s transport Road Traffic Act will integrate detailed authority having run trials since 2015, location data on roads, signs, traffic Finland has a positive when it introduced a free, temporary lights and other control mechanisms service from a train station.51 In May legal and regulatory for AV operators to use, and is set to 2018, the city introduced a regular environment. The traffic repaint the continuous yellow lines on ‘Robobus’ service running on public Finnish roads in white, partly as these safety authority is quite roads on a trial basis, with a non- are easier for machines to detect.55 driving human operator. It plans permissive, granting to introduce commercially viable permits for trials to anyone who is interested in experimenting with AVs. The entire road network is available for experimentation. — Henry Beniard Global Strategy Group, KPMG in Finland

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© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 7 United Kingdom Policy and Technology and Consumer Infrastructure legislation 2innovation 9 12 acceptance 10

Supportive legislation and an and world-leading policy; it has seen i o increasingly coordinated national many positive announcements regarding io o o to both private sector initiatives and local nited indom strategy address key barriers. and central government strategies,” says Public trials are ramping up. Sarah Owen-Vandersluis, Partner, Head anada of Public Mobility Strategy, KPMG in Infrastructure presents an the UK. “In both the public and private ance opportunity for improvement. sectors, the pace and scale of activity is rapidly increasing. New initiatives and The United Kingdom (UK) continues to nited tates collaborations are beginning to identify be a leader on policy and legislation and benefits like improved accessibility, outh oea performs well across a number of sub- productivity, safety and economic growth, pillars. However, it needs to continue and prove the commerciality of new proactive efforts to address the critical ouce en ata aomete 201 business models.” factors of infrastructure and consumer acceptance. The UK has moved down The UK faces challenges concerning o oio o oi iii two places in 2019, but only due to digital and physical infrastructure, o o to high-performers Norway and Finland especially since investments in this joining the index. sector take time to bear fruit. It lags hina behind other countries in 4G coverage, The UK government’s forward-thinking global connectivity, quality of roads nited tates approach to deploying AVs places it second (especially smaller roads) and logistics on the policy and legislation pillar, and infrastructure. Promisingly, extensive nited indom first on the new data-sharing sub-pillar. In investments are being made in 5G to August 2018, the UK Parliament passed connect 5G test beds and test tracks. inland the Automated and Electric Vehicles Act, which adapts the existing motor insurance Regarding physical infrastructure, the oa framework by extending compulsory UK’s island geography — and therefore 56 insurance to AVs as well as the driver. In short freight journey distances, a larger ouce tatista 201 November, the government announced number of bends on motorways and support for three public trials in 2021, frequent junction points — may inhibit the including AV buses across the Forth development of truck platooning, which Bridge in Scotland and self-driving taxis in is an early opportunity for AV technology. The UK continues to 57 London. Additionally, in December 2018, However, physical infrastructure will make strong progress the UK Parliament published an extensive improve as the UK government delivers report outlining their proactive approach to increased investment across the road towards AV adoption, as pursuing the benefits of MaaS.58 network and key infrastructure operators a center of innovation collaborate with central government and Cross-government collaboration has also and testing, which is industry to support the deployment of AVs. been effective. For instance, the Law supported by world class Commissions of England and Wales Improving consumer acceptance will policy and legislation. and Scotland are currently reviewing the be critical for the deployment of AVs. UK’s legal framework for AVs, due to be To achieve this, government and industry — Sarah Owen-Vandersluis 59 completed in March 2021. Across the have a role to play in communicating the Partner, UK, there has been a concerted effort to benefits of AVs and the efforts being Head of Public Mobility Strategy, develop CAV strategies, business plans and taken to ensure their safety. In part, this KPMG in the UK road maps, with recent initiatives spanning can be achieved through rigorous testing Scotland, the West Midlands and the UK’s and the publication of safety standards — federal Department for Transport (DfT). such as the new cyber security standard for AVs, published in December 2018.60 “The UK has made a lot of inroads, with big investments, a committed government

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Germany has a national Transport and Digital Infrastructure. i i strategy for AVs and plans “This includes working closely with o o to automotive and IT sectors as well as eman for using them ethically but universities and research institutions. its federated structure, which The legal requirements for the use of Isael the first highly automated and fully can spur innovation in regions, automated driving functions for regular anada may threaten consistency at operation in road transport have been the country level. in place since 2017. Germany is thus a outh oea global pioneer.” Since 2015, the German government has nited tates Several of Germany’s powerful states followed a national AV strategy and has are also working on AVs. North Rhine- recently started working to ensure that ouce Intenational 2019 Westphalia, which includes Cologne AVs are used ethically, including protecting and Düsseldorf, has established people rather than property or animals.61 a Zukunftsnetz Mobilität (future “Last year, the Federal Government i o of mobility) network to support passed an action plan on the report by an o to municipalities,64 with the promotion Ethics Commission on Automated and of AVs among its tasks. Berlin and aan Connected Driving,” says Moritz Püstow, Brandenburg (the state surrounding the Partner, KPMG Law in Germany. “The outh oea capital) are both analyzing the market government has developed measures to for research and development work on implement these ethical rules. It is unique eman AVs. Public transport providers in Berlin, worldwide.” Hamburg and Frankfurt, as well as the nited tates national railway company Deutsche More generally, based on the coalition Bahn, are testing autonomous buses in agreement for Germany’s new federal nited indom government from February 2018, a a range of settings, and there are more than 20 AV test sites nationwide. legal framework is being developed to ouce atee 201 allow autonomous driving in specific As with the UK, Germany moves down settings.62 two places as a result of new entrants The coalition agreement also led to in the index. It records the best score for Last year, the Federal the government agreeing to establish road logistics infrastructure, as well as Government passed an a National Platform Future of Mobility strong results on industry partnerships action plan on the report task force,63 which will consider and AV-related patents. While Germany’s digitalization among other topics. powerful automotive industry gives by an Ethics Commission the country a strong base, with Bosch on Automated and “The German federal government particularly active in filing patents on Connected Driving. It is is systematically implementing its AV technology, Püstow says the highly strategy for automated and connected devolved nature of government — with unique worldwide. driving,” says Christine Greulich, more than 11,000 municipalities — — Moritz Püstow Division Head, Automated Driving makes it difficult to set national standards Partner, and Intelligent Transport Systems and strategy. KPMG Law in Germany at the German Federal Ministry of

2019 Autonomous Vehicles Readiness Index 21

© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 9 United Arab Emirates Policy and Technology and Consumer Infrastructure legislation 11 innovation 14 5acceptance 7

The UAE is boosted by making its government paperless by o i i o 67 good road quality and high 2021. Dubai aims to run “all applicable o to government transactions” through nited Aa miates consumer opinion of AVs, but blockchain, a decentralized system does less well on data-sharing, that uses encryption to make data inaoe entered permanent and unalterable, AV businesses and patents. which can be used for ‘smart contracts’ he ethelands that automate transactions between The United Arab Emirates (UAE) multiple parties. Such contracts could moves up one place relative to the aan be used by AV operators to handle other countries in the AVRI because payments for charging or selling data it has outpaced other countries in the ance generated by vehicles. consumer acceptance pillar, with the third most-positive consumer opinions ouce old conomic oum loal ometitie “With Dubai’s enthusiasm for Index 201 of AVs. It leads the measures on road technological innovations, in particular quality and the change readiness of its forays into artificial intelligence and o oiio o o its technology infrastructure, and also blockchain, the UAE is well-positioned o to scores highly for its government’s to do even better in the future,” says overall change readiness. It scores Ravi Suri, Partner, Global Head of India less well on data-sharing, AV company Infrastructure Finance, KPMG in the headquarters and AV-related patents. Lower Gulf. “These are technologies that exico should enable the introduction of AVs.” Dubai, the UAE’s largest city, aims to nited Aa miates make 25 percent of all transportation Newly built Masdar City, in Abu Dhabi autonomous by 2030, based on a in the UAE, has transported more than Russia strategy launched in 2016 that focuses two million people on its Personal on environmental and efficiency Rapid Transit driverless pods since ail improvements and is expected to 2010, running on special guideways. generate AED22 billion ($US6 billion) In October 2018, the city launched a ouce Intenational 2019 65 annually. In September 2016, Dubai’s regular AV minibus service, with plans Road and Transport Authority trialled an to launch seven more in 2019.68 AV shuttle on a 700m route, offering With Dubai’s enthusiasm 66 free rides to commuters. for technological Other technology initiatives by Dubai innovations, in particular may contribute to these ambitions. its forays into artificial In October 2018, it announced the launch of a government-endorsed intelligence and blockchain platform, using technology blockchain, the UAE is from IBM, as part of a move towards well-positioned to do even better in the future. These are technologies that should enable the introduction of AVs. — Ravi Suri Partner, Global Head of Infrastructure Finance, KPMG in the Lower Gulf

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Japan performs well on 2018 saw AV proofs of concept by public i o innovation and infrastructure and private-sector organizations focused o to on taxis and buses within defined areas, aan and sees a specific need for including airports. Iguchi says that the AVs for its aging population, development of AVs in Japan means outh oea dealing with strong regulations, pressure but needs more deregulation groups and technical problems caused eman and promotion. by snowfall and earthquakes. “The problems of aging public infrastructure, nited tates Japan performs strongly on technology in roads, tunnels and bridges, and their and innovation, where it is fifth overall maintenance costs are also serious,” he nited indom and has the most AV-related patents. It adds. also does well on infrastructure, where ouce atee 201 it is third overall and has the second- He believes that deregulation and highest scores for both 4G coverage a campaign to promote AVs led and road logistics infrastructure. These by leading companies would be of o o o help improve its ranking, despite the benefit. “There are great opportunities o to entry of new countries above it. It is surrounding the 2020 Olympic mid-table on policy and legislation and Games in Tokyo. This means there is a outh oea consumer acceptance, and currently possibility that the practical application has one of the lowest uses of online of automatic driving will be accelerated aan ride-hailing. in the next couple of years,” he says. There is already political will behind oa The use of AVs in Japan will be this: in June, an economic review by influenced by its status as a rapidly the government included plans to start nited tates aging society, where a quarter of the testing AVs on public roads, followed population is older than 65, according by a public service for the 2020 Games, he ethelands to Koichi Iguchi, Partner, Head of Global then a commercial offering by 2022.69 Strategy Group, KPMG in Japan. This ouce en inal 201 means a focus on reducing accidents and congestion, improving efficiency and — in particular — providing There are great mobility for older people, particularly opportunities surrounding in rural areas. Hundreds of towns and the 2020 Olympic Games villages have no doctors, millions of older people have difficulty shopping in Tokyo. This means there and there has been a sharp increase is a possibility that the in those who have had to return their practical application of driving license over the last decade. automatic driving will be accelerated in the next couple of years. — Koichi Iguchi Partner, Head of Global Strategy Group, KPMG in Japan

2019 Autonomous Vehicles Readiness Index 23

© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 11 New Zealand Policy and Technology and Consumer Infrastructure legislation 3 innovation 16 17 acceptance 8

New Zealand’s strong mainly quiet roads, mobile networks i o ii o are patchy and current vehicles are o o to government performance a mixture of new cars from Europe inaoe partly counteracts lack and second-hand imports from Asia. of scale and domestic Istvan Csorogi, Director, Advisory, e ealand KPMG in New Zealand, says this will manufacturing, and the make it harder to introduce infrastructure nited indom country has opportunities in for AVs. oa software and agriculture. However, it does have excellent governance, recognized by its third place eden New Zealand has a strong on policy and legislation and high scores reputation as a place to develop for AV-focused agencies, effectiveness of new technologies, although further ouce old conomic oum etoed Readiness legislative process and quality of judicial Index 201 development often takes place system. “New Zealand is well-placed in elsewhere. Ohmio, a company that its readiness for AVs due to our robust staged trials of its driverless minibuses Industry investment and partnerships in regulatory and business environment,” at Christchurch airport, announced in AV-related firms (per capita) — score by says Richard Cross, Manager, Strategic June 2018 a new joint venture with the country ottom Policy and Innovation, Ministry of city of Heshan in China, which would e ealand Transport. “Our legislative process and see manufacturing and much research 0.00 relatively small size compared to many move to that city.70 ech Reulic other countries means that we can be 0.00 The government is working to agile. New Zealand regulators have a inland encourage early-stage work. The can-do attitude and a focus on finding 0.00 New Zealand Transport Agency has solutions and removing barriers.” The una identified an area of Christchurch government has defined a specific 0.00 that was ‘red-zoned’ (categorized for testing framework for AVs.73 exico redevelopment after damage in the 0.00 Csorogi says there is potential for the city’s 2011 earthquake) as a location ouce unchase 201 country to specialize: “In New Zealand, for the Christchurch Mobility Lab, a it’s about developing the intelligence trial area for AVs.71 within these vehicles. I don’t think The country is already used by In New Zealand, it’s we’ll ever produce mainstream AVs, companies testing the Cora, an about developing the but there is an opportunity to develop autonomous flying taxi.72 artificial intelligence and AV controls intelligence within New Zealand does not manufacture here.” This could focus on specific these vehicles. I don’t vehicles or carry out mainstream areas including agriculture, drones think we’ll ever produce research and development, its and controlled environments such mainstream AVs, but domestic market is small and many as campuses and airports. He adds there is an opportunity technology companies are foreign- that autonomy should have particular owned. In the index, New Zealand benefits for New Zealanders, where to develop artificial scores low on the number of AV the lack of central barriers makes intelligence and AV companies and industry investments, lane correction an important safety controls here. despite both being calculated per measure, something which may capita. The country’s low population take advantage of work the country — Istvan Csorogi density and location provide particular is undertaking with Australia to Director, Advisory, challenges for AV adoption: there augment the accuracy of GPS satellite KPMG in New Zealand is little current justification for technology. management infrastructure on

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Canada has a good quality Pilot Program, started in 2016 and o io o workforce and strong involving Uber — which is testing self- o to driving vehicles in Toronto — Canadian anada government leadership, with technology company BlackBerry 74 Ontario allowing tests of and the University of Waterloo. ech Reulic The province has established an fully driverless vehicles, but Autonomous Vehicle Innovation inaoe the country’s large size and Network and an Automotive Supplier remote locations may stretch Competitiveness Improvement outh oea Program, the latter providing matched AV infrastructure. funding for innovation by smaller hina suppliers.75 Canada’s main strengths on AVs ouce Intenational 2019 are the high quality of its existing Earp says that specific challenges workforce, its status as an attractive for AVs in Canada include designing and open destination for skilled systems that work in remote areas i o immigrants and strong leadership from and urban environments, and work io o o to different levels of government that needed on exporting and international see the potential benefits, according partnerships. However, he adds that nited indom to Colin Earp, National Transport Lead, there are likely to be opportunities KPMG in Canada. from the Investing in Canada Plan, anada through which the federal government “There’s this real feeling that transport is spending more than 180 billion ance drives not just economic productivity, Canadian dollars (US$137 billion) over it drives social equity and commercial 12 years on a range of infrastructure. nited tates activity. In that respect, you’re seeing The plan covers transport in two of civic, provincial and national leaders its five main areas, and in 2018, ran outh oea really begin to create an inclusive and a specific Smart Cities Challenge collaborative culture to drive better competition for localities. The federal ouce en ata aomete 201 transportation in the future, including government has also supported AVs,” he says. research into how AVs will change 76 There’s this real feeling An example is Ontario, which is home Canada’s economy and job market. to more than a third of the population that transport drives not While Canada does relatively well on and many vehicle and technology just economic productivity, government and industry involvement, companies. The province has lifted it ranks low on 4G coverage, the two it drives social equity and some regulations on AVs, meaning infrastructure scores and EV charging commercial activity. In that from January 2019 completely stations, and drops five places in the driverless vehicles can be tested on its that respect, you’re seeing overall index, partly due to two new roads. The changes are a development entrants higher in the index. civic, provincial and national of Ontario’s 10-year Automated Vehicle leaders really begin to create an inclusive and collaborative culture to drive better transportation in the future, including AVs. — Colin Earp National Transport Lead, KPMG in Canada

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© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 13 South Korea Policy and Technology and Consumer Infrastructure legislation 16 innovation 7 4 acceptance 19

South Korea opens the Meanwhile, in January, South Korean o o o K-City test facility, pilots technology group Samsung released o to a hardware and software platform outh oea driverless buses and works for AVs, following its US$8 billion on detailed mapping for AVs. purchase in 2017 of a US-connected aan car company and its establishment On 10 December 2018, South Korea of a US$300 million automotive oa 80 opened K-City, an experimental innovation fund. city environment equipped with nited tates South Korea scores highly on several 5G technology that will be used to test AVs. K-City, built in Hwaseong AVRI measures, including government- he ethelands by national telecoms provider KT funded AV pilots, industry partnerships, availability of EV charging stations and and the Korea Transportation Safety ouce en inal 201 Authority, will focus on testing and 4G coverage, which it leads with 96 commercializing Level 3 AVs, which percent population coverage. However, it is poorly rated on the effectiveness of include sophisticated autonomous o iio features but that still require a human its legislative processes. i o o to driver to take over when required.77 In Unlike countries on the forefront of aan November, KT tested an autonomous AV legislation, South Korea is limited bus at the country’s Incheon airport, by rules that only allow pilot driving of outh oea including changing lanes and stopping level 3 AVs, showing a slower legislation at traffic lights.78 process compared to those at the top of eman 81 In March, the South Korean Ministry this index. Overall, the country moved th th nited tates of Land, Infrastructure and Transport down from 10 to 13 , as Norway and announced that it planned to create Finland climbed up the rank and as nited indom detailed maps for AVs as part of Japan outpaced South Korea on the Cooperative Intelligence Transport technology and innovation pillar. Systems (C-ITS), a project designed ouce atee 201 to enhance the safety of AVs.79 Reforming regulation, securing relevant technology will be pivotal for South Korea in reducing the gap between its AV industry and that of other leading countries. Based on the government’s newly established R&D Foundation and K-City initiatives, we expect to see positive outcomes in the near future. — Hyo-Jin Kim Partner, Head of Infrastructure, KPMG in Korea

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A powerful technology “Perhaps the most interesting thing Industry investment and partnerships in about AVs in Israel are the investments AV-related firms (per capita) — score by start-up sector makes Israel being made to create them,” says country to a leader in AV innovation, Hillel Schuster, Principal, Head of Isael 1.00 but lack of domestic Management Consulting, KPMG in Israel. The country has 500–600 oa 0.16 manufacturing may push back automotive start-ups, with around a nited tates local deployment. fifth focused on AVs. Many benefit 0.14 from technologies originally developed eden Israel’s strength in AVs lies in its for Israel’s military, in areas including 0.12 export-focused technology sector, logistics, mapping, lidar (light detection nited indom which helps the country top the and ranging technology) and night- 0.12 index’s technology and innovation vision. pillar as well as specific measures of ouce unchase 201 industry partnerships, investment and It may take a while for Israelis to get access to AVs, however, with the headquarters. o o o country ranked in the bottom-half of o ottom Following Intel’s 2017 acquisition the index on both policy and legislation of local AV specialist Mobileye for and infrastructure. “Most of Israel’s e ealand US$15.3 billion,82 2018 has seen businesses are oriented towards more international interest in Israeli creating solutions for international eman automotive technology companies. companies,” says Schuster. Vehicle manufacturer Daimler invested Furthermore, as a country with short Russia in smartphone data analytics company journey distances and no domestic Anagog, energy giant BP bought vehicle manufacturing, it may be Isael into fast EV charger StoreDot and a hard place to introduce AVs — ail Japanese conglomerate Mitsubishi something that may be exacerbated by has put money into SoftWheel, which the fact that autonomous and human- is focused on wheel innovation.83 driven vehicles will have to work hard ouce en inal 201 Meanwhile, other major vehicle to co-exist on the country’s crowded manufacturers have announced they urban roads. will locate research and development Perhaps the most work in Israel. interesting thing about AVs in Israel are the investments being made to create them. Most of Israel’s businesses are oriented towards creating solutions for international companies. — Hillel Schuster Principal, Head of Management Consulting, KPMG in Israel

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© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 15 Australia Policy and Technology and Consumer Infrastructure legislation 12 innovation 17 9 acceptance 12

Australia’s performance Road operator association Austroads Regulations supportive of AV use — score by country (top 5) could be boosted by the has undertaken work focusing on supporting vehicles’ operations Australia recent establishment of a through machine-readable signage 1.00 federal body for transport and road marking, open-data in the Finland context of road-operator data, and technologies, as well as 1.00 the opportunities for automated Singapore efforts by states. heavy vehicles in remote and regional 1.00 87 areas. Outside government, toll road The Netherlands Australia gains the top score on operator Transurban has conducted 1.00 regulations supportive of AVs and trials of connected and autonomous Norway there have been broader signs of vehicles in partnership with six vehicle 0.92 change on policy and legislation. It also 88 manufacturers. It is now possible Source: KPMG International, 2019 saw significant improvement on its to circumnavigate Australia in an EV, infrastructure score. Overall, Australia following significant new installations dropped only one spot in the overall 2019 of charging infrastructure.89 Availability of high-performance mobile rankings, despite the five new countries internet — score by country (top 5) added and two of those (Norway and In October 2018, Infrastructure Victoria, Finland) landing in the top six. an advisor to that state’s government, Singapore published a detailed investigation 1.00 In 2016, Australian transport ministers on the implication of AVs and their Norway agreed to a phased reform of current infrastructure requirements.90 It said 0.89 driving laws to enable use of full AVs that by 2046, AVs would reduce annual Australia from 2020.84 In October 2018, the federal greenhouse gas emissions by 27 million 0.86 government established the Office for tonnes, allow a 91 percent increase in New Zealand 0.82 Future Transport Technologies, a 9.7 Victoria’s road network efficiency and Finland million Australian dollars (A$) (US$7.1 boost economic growth by $A15 billion 0.80 million) initiative to unify the states’ and (US$10.8 billion) annually. territories’ governments and agencies in Source: GSMA Global Connectivity Index, 2017 delivering future transport technologies “While Australia is making progress, in a safe and responsible manner.85 there are a number of opportunities New South Wales, Queensland, South for the effective integration of AVs,” As EVs and AVs become Australia and Victoria have also made says Praveen Thakur, Partner, Transport more ubiquitous, greater significant investments.86 and Infrastructure, KPMG in Australia. focus is needed on energy “These include implementing In a country as large and diverse as recommendations for infrastructure and policy and road pricing as Australia, with a multi-tiered system addressing consumer sentiment and governments seek to deal of government, collaboration is critical. concerns. More generally, as EVs and with new energy demand Dr Geoff Allan, Acting Chief Executive AVs become more ubiquitous, greater Officer of Australia’s National Transport focus is needed on energy policy and patterns and replace Commission, says that “all levels road pricing as governments seek to revenues as traditional of government are working closely deal with new energy demand patterns fuel consumption is with industry to support automated and replace revenues as traditional fuel vehicle deployment. Federal, state consumption is reduced.” reduced. and territory governments are collaborating to develop the regulatory — Praveen Thakur framework, expand trials and research Partner, infrastructure requirements.” Transport and Infrastructure, KPMG in Australia

28 2019 Autonomous Vehicles Readiness Index

Austria joins with Hungary and projects illustrate that the technological ii o Slovenia to create a ‘driverless development will not be completed o o to tomorrow and a good roll-out can inaoe region’ as its AV companies only be made possible with formative develop international links. framework conditions by the public una sector. With the new action package, In March 2018, Austria joined the BMVIT mainly seeks to ensure a Austia with Hungary and Slovenia in sensible and efficient use of automated agreeing to establish cross-border mobility in terms of traffic as well as e ealand development and testing of new to strengthen Austria’s competitive vehicle technologies including AVs, position on the international stage. First nited Aa miates through a new Austrian-Hungarian- and foremost, the Ministry is focused 91 Slovenian driverless region. on creating liveable public spaces and ouce Intenational 2019 Austria receives one of the highest ensuring a sustainable, climate-friendly scores for its AV-focused agency, mobility system. the Austrian Ministry for Transport, i o Innovation and Technology (BMVIT — The country’s willingness to work o counties 120 internationally was demonstrated in Bundesministerium für Verkehr, ech Reulic Innovation und Technologie). June 2018, when companies from the Austrian Light Vehicle Proving Region eden Within the scope of the first for Automated Driving (ALP.Lab) Automated-Connected-Mobile visited Slovenia to meet a government Austia Action Plan (2016–2018), Austria has minister and discuss cooperation.93 established a legal framework, and Meanwhile, 2018 saw Austrian-based una test environments and a variety of transport technology group TTTech, research projects have been started. whose investors include Samsung, e ealand sign AV agreements with German BMVIT invested around 25 million euros in this period to support the vehicle-maker BMW and China’s ouce Intenational 2019 development of automated driving in SAIC.94 Austria. Over 300 AV professionals are working there on three aspects Austria falls four places in the overall of AV readiness: ensuring transparent AVRI ranking, due to the addition In fields of software information, safe testing and standard of Norway, Finland and Israel and development and artificial operation, and logging lessons Australia’s faster growth in the intelligence, we have an infrastructure pillar. learned. In total, 34 specific measures ongoing race between are planned for the next few years.92 traditional manufacturers Whereas the achievable potentials as and new actors. But well as building (inter)national networks autonomous driving is not of Austrian supplier firms and research institutions were important then, a only about technology — it sensible use in terms of traffic has also requires an effective priority for the new Automated Mobility regulatory framework Action Package (2019–2022). Test reports and experience from current tests and to ensure safety and sustainability. — Werner Girth Partner Advisory, KPMG in Austria

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French legal changes in 2019 France is mid-table on all four pillars i o hope to add to driverless bus of the AVRI and fell four places due io o o to to Norway, Finland and Israel joining nited indom services already running, the index and Australia’s progress while the Paris Motor Show on infrastructure, but its vehicle anada manufacturers as well as government are highlights links with Israeli working to do more. In March, vehicle ance technology companies. maker Renault showed a concept car designed to work as an electric robot nited tates Driverless minibuses already move taxi, the EZ-GO, at the Geneva Motor passengers around otherwise Show.98 French vehicle part makers are outh oea pedestrianized areas of La Défense, an also involved in development in the area99 office complex in the west of Paris.95 and October 2018’s Paris Motor Show ouce en ata aomete 201 Through legal changes expected to highlighted links with Israeli automotive come into force in early 2019, the technology companies. French government hopes to see more i i services of this kind. The changes “The French tech ecosystem is very o o th10th will allow drivers of AVs to be outside well-connected to other places in the inland vehicles and will release them from world where things are happening, responsibility for accidents that take whether Silicon Valley or Israel,” says oa place when the software is activated. des Places. He adds that this makes sense given the relatively small size ance “We expect that these legal changes of its market and companies: “How will facilitate new experimentation,” relationships develop with the key aan says Laurent des Places, Partner, digital players is still a question.” He Head of Automotive, KPMG in France. adds that a national strength is the inaoe There are already more than 50 AV French government’s provision of pilots taking place across France, significant tax credits for research and ouce Intenational 2019 with many around Paris and others development work. in cities including Rouen and Lyon, the latter claiming the world’s first autonomous public transport service The French tech from September 2016.96 The changes ecosystem is very well- are part of a national strategy for AVs published in May 2018, which also connected to other considers safety, public support, the places in the world where development of digital infrastructure, things are happening, how data is exchanged and the overall transport ecosystem.97 whether Silicon Valley or Israel. How relationships develop with the key digital players is still a question. — Laurent des Places Partner, Head of Automotive, KPMG in France

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The Spanish government management vehicles and police o o o vehicles, and plans to extend it to all o 11th1th and cities are working with 101 municipal vehicles. Madrid, along Austalia companies on real-time with Lisbon in Portugal and Paris in information systems and France, is one of three pilot cities India in Auto C-its, an EU-funded study collision avoidance technology. 102 on regulating AVs. The Universitat inaoe Politècnica de València is involved in In October 2018, the Spanish Directorate another European project — as the General of Traffic (DGT) awarded a ain field test site for 5G technology run by 3.4 million euros (US$3.9 million) smart the UK’s University of Lancaster.103 mobility contract to a consortium inland 50 percent owned by KPMG in Spain. The Spain is in the bottom-half of the ouce en inal 201 4-year Plataforma de Vehículo Conectado table for all four pillars, but there is 3.0 (Connected Vehicle Platform 3.0) aims potential to change this. “There is clear to establish a real-time system through commitment from the Directorate o i i o which vehicles can connect and exchange General of Traffic to boost AVs. The o th10th traffic information. It aims to address development of a digital platform to the directorate’s “visión zero” objective ance connect vehicles and infrastructure in of zero fatalities, harm, congestion and real-time will strengthen our existing emissions.100 Austia high-quality interurban transport network. Moreover, in the last few Spanish cities are undertaking their nited tates months, we are seeing our big own projects. From September 2017, cities implement new transportation Transports Metropolitans de Barcelona outh oea modes very quickly, a clear signal of has been piloting Mobileye’s Shield+ improvement in terms of consumer collision avoidance system, which is ain acceptance,” says Ovidio Turrado, Head designed to improve urban road safety. of Infrastructure at KPMG in Spain. The city initially tested the system ouce old conomic oum loal ometitie in buses, street-cleaning and waste Index 201

The development of a digital platform to connect vehicles and infrastructure in real-time will strengthen our existing high-quality interurban transport network ... We are seeing our big cities implement new transportation modes very quickly, a clear signal of improvement in terms of consumer acceptance. — Ovidio Turrado Head of Infrastructure, KPMG in Spain

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© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 19 Czech Republic Policy and Technology and Consumer Infrastructure legislation 17 innovation 18 19 acceptance 20

New AV test sites, The manufacturers are already here, o io o supporting the country’s top they know the environment and have o to significant investments, so it’s natural ech Reulic rating for AV pilots, should to continue with that. The country build on the Czech Republic’s has a skilled workforce, including in anada research and development.” reputation of local vehicle inaoe These projects help the manufacturing. Czech Republic, a new addition to outh oea the AVRI, gain the highest possible The next few years will see new score for government-funded AV AV testing grounds built in the hina Czech Republic, including one being pilots. The government has published constructed by German vehicle maker a strategic plan for AVs that, as well ouce Intenational 2019 BMW at a 1,200 acre site in Sokolov as, supporting testing, discusses near the German border. It will spend a legal framework and support for more than 100 million euros (US$113 international standardization. In AV technology firm headquarters (per million) on the site, which is due to start June 2018, it announced draft legal capita) — score by country ottom work early next decade. BMW chose the amendments to facilitate AVs, similar ail test site, its first in eastern Europe and to changes made by Germany in 0.01 105 in a country where it does not currently 2 0 1 7. exico manufacture, from 82 potential locations, 0.00 104 However, the country receives lower with lower costs as a factor. e ealand scores in other measures, including 0.00 The country’s economy relies on the quality of its judicial system, nited Aa miates vehicle manufacturing, including locally headquartered AV companies, 0.00 AV-related patents and industry by Volkswagen and Hyundai, and ech Reulic investments. Kliment says that the the new test facilities should help 0.00 maintain this work for the AV era, strategic plan and the establishment ouce Vision stem Intellience omet as and according to Pavel Kliment, Partner of the two test sites provide grounds unchase o 201 focusing on infrastructure, KPMG in for optimism, but adds that local the Czech Republic. “The government deployment of AVs is unlikely over the feels this is an important step to next few years. The manufacturers are position the country for the future. already here, they know the environment and have significant investments, so it’s natural to continue with that. The country has a skilled workforce, including in research and development. — Pavel Kliment Partner focusing on infrastructure, KPMG in the Czech Republic

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The Chinese government some measures, including numbers o oio o oi iii allows first approved AV tests of headquarters and patents — on o o to which it is third numerically to Japan hina in 2018, with large number of and the US — its score is reduced local companies working to when these are calculated per capita. nited tates China also ranks last on a new compete globally. measure assessing the data-sharing nited indom environment. 2018 saw the start of government- inland approved tests of AVs on public roads, Tran says that the government sector with tests held by Chinese start-ups can enable AV adoption through oa Jingchi and Pony.ai in the southern city more spending on communications 106 of Guangzhou in February. Although infrastructure. “Autonomous driving companies including Baidu, which will come gradually, on certain routes, ouce tatista 201 runs China’s main search engine, had streets and highways. That gives 107 run such tests as early as 2015, the more confidence for developers to i o io move represents a regularization of develop autonomous driving functions o o ottom the process. gradually, from easier routes to more ech Reulic complex situations, including AVs co- “The environment in China for testing existing on streets with normal cars.” new innovation is much easier than India in most other markets in the world,” China is also likely to benefit from a una says Huu-Hoi Tran, Partner, Automotive large number of companies focused Sector, KPMG in China, adding that on vehicle technology, including start- nited Aa states regulators prefer to allow companies ups aiming to compete globally. In to try innovations before intervening. March 2018, KPMG in China published hina a list of 50 leaders in this sector, China shows relative improvement based on research covering more than in the technology and innovation and 4,000 companies.108 Philip Ng, Partner, ouce en ata aomete 201 infrastructure pillars, and gains the Technology Sector, KPMG in China highest score on a new measure says that companies of particular focused on online ride-hailing, with interest include RoboSense and 21 percent of people having used Autonomous driving SureStar, both of which focus on lidar, such a system. However, it scores will come gradually, on and Horizon Robotics, which focuses lower on measures including the certain routes, streets and on artificial intelligence microchips.109 availability of latest technologies and highways. That gives more consumer adoption of technology. On confidence for developers to develop autonomous driving functions gradually, from easier routes to more complex situations, including AVs co-existing on streets with normal cars. — Huu-Hoi Tran Partner, Automotive Sector, KPMG in China

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Hungary focuses on testing Hungary is also attracting increasing levels ii o and manufacturing with of manufacturing. In July 2018, BMW o o to announced it will spend 1 billion euros inaoe Zala Zone test center and on a new plant in Debrecen in eastern investment by BMW, but Hungary, which will include capabilities for una automation.112 The country has also signed domestic use of AVs looks an agreement with Austria and Slovenia Austia set to trail other countries. to develop cross-border cooperation on 113 developing and testing AVs. e ealand Hungary is seeking to position itself Hungary is one of the countries as a research and development (R&D) nited Aa miates given the highest score for having AV center, most significantly through the development of Zala Zone, an an AV-focused agency, although it ouce Intenational 2019 all-purpose proving ground set up at has weaker scores on the quality Zalaegerszeg in the west of the country. of its judicial system and on several The facility, ordered by the government measures of innovation. Zsótér says o i i o in 2016 to test hybrids, EVs and AVs, that while Hungary is helping to o ottom develop AI technologies, Hungarians includes stretches of country road, India 110 highway and an urban environment. are unlikely to be among the first to It is already partially open with one use them, due to a small domestic ech Reulic market and a focus on exporting, and German carmaker having booked use early in 2019, and it is scheduled to be despite enthusiasm to develop R&D, una fully functional in 2020. the Hungarian government has not passed any legislation concerning local Russia Márton Zsótér, Manager of use of AVs. Infrastructure, Transportation and ail Energy Advisory, KPMG in Hungary, He adds that AVs represent a says that this is part of a trend for significant opportunity for many ouce old conomic oum loal ometitie increased R&D work, involving Hungarian companies: “Logistics Index 201 suppliers, universities and technology companies, public transportation and companies. This includes a Budapest- similar industries are all facing labor based AV start-up, AImotive, which shortages. AVs could be a solution for Logistics companies, has partnerships with companies them to overcome this issue.” public transportation and including PSA Groupe, Samsung and similar industries are all Volvo and carries out its R&D work in Hungary.111 facing labor shortages. AVs could be a solution for them to overcome this issue. — Márton Zsótér Manager of Infrastructure, Transportation and Energy Advisory, KPMG in Hungary

34 2019 Autonomous Vehicles Readiness Index

Russian company carries Kamaz and Volgabus and AI software iii o ooi out test in snow and claims developers, like Cognitive Technology.” o o ottom he says. “There are also good transport exico first European AV ride- information services, in particular hailing service, with new Moscow’s traffic control system, which India monitors buses, taxis and car-sharing.” government resolution Another strength, according to the ail allowing tests on public roads. GSM Association, is that more than 80 percent of Russians will have access to hina 116 2018 has seen increasing Russian 5G networks by 2025. interest in AVs, with February seeing Russia In November, the Russian government AV car testing on the streets of Moscow, with snow and in below- issued a resolution allowing testing 114 ouce old conomic oum etoed Readiness freezing temperatures. In August, of AVs on public roads in Moscow Index 201 the company launched what it claims and Tatarstan from December 2018 is the first autonomous ride-hailing to March 2022, with the aims of i i service in Europe, in the university confirming they can operate on roads oo i o town of Innopolis.115 The summer also and developing technical requirements. o ottom saw Moscow’s government agree ain to develop autonomous transport Dmitry Lobanov, a member of AutoNet, at the State Research Center of a government working group that aims Russia the Russian Federation (known as to improve legislation and remove Nami). In September, the government regulatory barriers, says that Russia India indicated that planned changes to the approved measures in March 2018 to international Vienna Convention on allow AVs on public roads and is now ail road usage would trigger changes to improving this access. This builds on Russian law. a more general resolution passed exico in 2016 that aims to cut barriers to Vadim Toporov, Associate Director, technology innovation. “Several major ouce Intenational 2019 Advisory, KPMG in Russia, has seen organizations — including Yandex rising interest in AVs among a number and Kamaz — are engaged in the of firms, with the focus shifting from development of highly automated and Yandex received theoretical questions to practical ones. fully automated vehicles,” he says. permission to test on “In Russia, Yandex is the industry “This interaction between the state and public roads in Russia, leader. It has started driverless competent commercial organizations ‘Robotaxi’ service in two Russian cities creates a friendly environment for the Israel and United States, and received permission to test on introduction of AVs.” showing its global public roads in Russia, Israel and United ambition. There are also States, showing its global ambition. other companies with There are also other companies with working prototypes, including working prototypes, including Kamaz and Volgobus, and AI software developers, like Cognitive Technology. — Vadim Toporov Associate Director, Advisory, KPMG in Russia

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Mexico’s new trade next 3 years to around US$100 billion, o oiio o o creating 80,000 new jobs, as a result o to agreement with the US of the deal.117 and Canada may involve India Recent changes in the Mexican exico transfer of AV technology, Federal Government have slowed although there is room down progress nationally in terms of nited Aa miates electric and autonomous vehicles, for improvement in and road infrastructure is generally Russia infrastructure. weak. According to de Presno, local administrations are more likely to do Mexico’s consumers are second only ail preparation work, like in the case of to India’s in enthusiasm for AVs, and Mexico City, which is pledging better there are other reasons to be optimistic, ouce Intenational 2019 and cleaner transport. according to Ignacio Garcia de Presno, Head of Infrastructure, KPMG in Mexico. Industry is likely to play a part too, These include the new US-Mexico- with Tesla extending its network io oi o Canada (USMCA) trade agreement, of charging points in the country. o o ottom announced in October 2018. “We’re Liberalization of Mexico’s electricity Russia getting more integrated with the US market, opening it to private and Canada,” he says, and as those two 118 investment by the end of 2018, aan countries’ manufacturers invest in AVs, should boost this process. “There’s Mexico is likely to be involved. a huge opportunity to improve our ail electricity network and to increase the The USMCA agreement requires that number of participants in the sector. India 75 percent of locally used vehicle parts I’m optimistic that the private sector are made within the three countries by will work with local government to exico 2023, up from 62.5 percent under the start improving,” de Presno says. North American Free Trade Agreement that USMCA will replace. While the ouce Intenational 2019 agreement requires a proportion of vehicle content to be built by workers earning US$16 an hour, more than There’s a huge most Mexican workers, industry opportunity to improve association INA believes part output our electricity network will rise by about 10 percent over the and to increase the number of participants in the sector. I’m optimistic that the private sector will work with local government to start improving. — Ignacio Garcia de Presno Head of Infrastructure, KPMG in Mexico

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Indians lead poll on However, several Indian start-ups are o oiio o o enthusiasm for AVs, while working on developing AV products for o to trucks, minibuses and cars, in some India its companies develop cases with a focus on exporting to 121 technology and partnerships. other countries. In November 2017, exico car-sharing aggregator Revv partnered India leads the AVRI’s new consumer with Intel subsidiary Mobileye to install nited Aa miates opinion measure, according to a KPMG the latter’s systems with the aim of 122 survey that asked participants about reducing accidents. India is also Russia their general opinion of AVs. Indians working to adopt EVs to tackle rising also gave the most positive reactions pollution levels, with several states ail to other questions in that survey, buying EV buses for public transport. including the likelihood to use an AV ouce Intenational 2019 and willingness to buy or lease one. “India’s strength lies in its innovation In a similar study, close to 50 percent and technology. It could be the leading supplier of AV technology to the ii o of Indians surveyed said they wanted o o ottom driverless cars, perhaps given roads world and incubate an entire “SV for in the country experience heavy AV” — a Silicon Valley for Autonomous Isael congestion.119 Vehicles. We hope to find unique and niche applications for AVs where aan India is introducing driverless trains on they can help provide added value, 120 ail a new underground line in Mumbai safety and efficiency, such as in-plant (although similar trains have been used logistics, in-campus movement and in other countries for some years). public transport.” exico This could pave the way for AVs to be deployed in public transport, freight India and logistics, but India is still at an early stage. Sameer Bhatnagar, Partner, ouce Intenational 2019 KPMG in India, says that “building an AV ecosystem in India would require a massive investment in new and India’s strength lies dedicated physical infrastructure given in its innovation and the geographical expanse, density and technology … We hope population of the country”. to find unique and niche applications for AVs where they can help provide added value, safety and efficiency, such as in-plant logistics, in-campus movement and public transport. — Sameer Bhatnagar Partner, IGH and Global Sector Leader — Ports, KPMG in India

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Brazil’s performance could the AVRI. However, there are reasons i o ii o o o ottom be boosted by new tax for optimism, including work taking place within universities. In May 2017, Russia incentive programs for vehicle the Intelligent Autonomous Robotic manufacturers focused Automobile (Iara) project at the Federal ech Reulic University of Espírito Santo in Vitoria on efficiency, safety and successfully used an AV on a 74-km outh oea research. journey that included urban and rural 124 roads. The Intelligent Robotic Car for exico In November, Brazil’s government Autonomous Navigation (Carina, based passed Rota 2030, a 15-year program on its Portuguese name) project, at the ail that will provide tax incentives to São Carlos campus of the University of improve vehicles’ fuel efficiency São Paulo, ran a first test-drive on city ouce old conomic oum etoed Readiness and safety, and for research and streets in October 2013.125 Index 201 development. The program, which replaces a set of tax exemptions that Endo points out that major vehicle o io o expired at the end of 2017, is worth manufacturers have factories in o ottom US$560 million in 2019.123 Brazil and that, in March 2018, Toyota announced a hybrid fuel model for Austalia Although Rota 2030 has a broad base the Brazilian market,126 and the work and covers Brazil’s widely used ‘Flex’ manufacturers are doing on AVs India engines that run on a mixture of fossil elsewhere could be introduced quickly. fuel and ethanol from sugar, it should Although infrastructure for EVs such Russia also benefit EVs and AVs, according to as charging stations is currently poor, Mauricio Endo, Head of Government and he says that there is potential for the exico Infrastructure, KPMG in Latin America. country to adopt EVs and AVs quickly. He points out that around 40 percent “Brazil is usually an early adopter of ail of the price of a car can be taxation, new technologies. If the automakers meaning that tax breaks are a significant and the government decide to adopt ouce Intenational 2019 tool for influencing the industry. AVs and prices are competitive, then I think consumers will be quick to use Brazil has been outpaced by Russia, them. Rota 2030 is the first step.” Brazil is usually an Mexico and India on the technology early adopter of new and innovation and infrastructure pillars, leading to its current position in technologies. If the automakers and the government decide to adopt AVs and prices are competitive, then I think consumers will be quick to use them. — Mauricio Endo Head of Government and Infrastructure, KPMG in Latin America

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© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. The road ahead In the year since KPMG International published its firstAutonomous Vehicles Readiness Index, countries across the world have made rapid strides in preparing for an AV future.

Governments have been drafting new rules, companies have been testing their vehicles, the media has been analyzing the benefits and risks of adoption, and consumers have been considering their willingness to ride a driverless car.

In the exciting months and years to follow, many governments will be eager to ensure that the policy environment, investment-attractiveness, infrastructure-readiness and consumer acceptance keep pace with evolving technology. Through this report, KPMG International hopes to have provided insight on best practices for developing autonomous technology and what countries can do to improve in a number of areas.

The road ahead: key insights for governments —— Advanced AV markets could invest more in technology and innovation: Countries like the Netherlands and Singapore, which are already at the top of the index, could far outpace other countries if they focused on Pillar 2. In particular, investing in AV-related firms and R&D, industry partnerships, and an innovation-friendly business environment could cement their position at the top. —— Countries leading in technology and innovation could work on achieving greater policy and institutional clarity: The countries that are leading the world in technology and innovation — Germany, Israel, Japan, Norway and the US — have middling scores in their AV regulatory environment and institutions. Adapting and revisiting their regulations, and establishing an AV- focused institution could take these countries to the top of the rankings. —— Most countries that do well on infrastructure readiness should reform their policy and legislative environment: Six of the 10 countries that lead the world on infrastructure readiness (Pillar 3) — Australia, Austria, Japan, South Korea, Sweden and the UAE — do not feature in the top 10 of policy/legislative environment (Pillar 1). Since these countries have some of the more capital-intensive parameters like network connectivity, 4G coverage, and roads in place, to improve their positions, they could work on relatively low-hanging fruit like establishing AV regulations and institutions. —— Less-developed AV markets could take advantage of higher consumer interest in AVs if other areas, including policy and technology, are addressed: Countries with the lowest overall scores like Brazil, India, Mexico and Russia, have the highest scores in our new survey testing respondents’ willingness to ride in an AV. This is good news in the long term for AV manufacturers given the size of these consumer markets, but only if governments actively develop other areas.

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As AV technology evolves, stakeholders across sectors KPMG member firms can help you explore your options will have to strategically, flexibly and nimbly prepare for a and achieve your objectives. Our past and ongoing transformation of the world as we know it. experience in the sector has prepared us to advise in the following areas. —— Transport authorities will develop and adapt governance and legislation to address complex themes like data —— We help local, regional and national transport security, safety, and the ethics of artificial intelligence. authorities and infrastructure providers develop and execute strategies to keep pace with AV disruption. —— Infrastructure operators will grapple with an increasing pace of change and shorter planning horizons. —— We help local investment authorities identify and pitch to AV prospects for foreign direct investment. —— Manufacturers will develop new operating models to be commercially viable. —— We help private sector companies and funds analyze and identify opportunities for investment and —— Investors will have to engage with new investment partnerships in the AV value chain. classes and design innovative value capture models. —— We produce cutting-edge research on AVs that enables —— Consumers will come to understand a new a multitude of stakeholders to understand the dynamic transportation paradigm enabled by artificial and uncertain space. intelligence.

About KPMG KPMG’s Global Public Sector Transport network works with public transport authorities to embrace emerging technologies to help increase capacity, optimize asset life cycle and leverage existing data. We help governments and transport providers to understand and shape the future of public transport, while supporting them in improving the experiences of customers today.

We understand that clients need to enhance their performance while cutting costs and using existing assets, and we support them through realizing the value of their land and increasing ancillary revenues, such as from digital advertising. Our teams also support them in helping to maximize opportunities from disruptive technologies including EVs mobility-as-a-service, service, smart assets and transport systems, data and analytics.

For more information, visit kpmg.com/publictransport.

KPMG’s Global Government & Public Sector practice works to deliver meaningful results through a deep understanding of the issues, an appreciation of how the public sector works, and global and local insight into the cultural, social and political pressures facing governments today. Our network of professionals, many of whom have held senior public sector roles, consistently strive to combine their practical, hands-on experience with insight from our global network to help our industry clients implement transformational strategies, economically, efficiently and effectively. We understand the continuing impact of innovation and disruption on governments as they search for more efficient ways to deploy technology to empower change within their organizations. For further information, please visit us online at kpmg.com/government.

2019 Autonomous Vehicles Readiness Index 41

The 25 countries have been assessed on 25 different measures, gathered into four pillars. Four measures are scored for this index by KPMG International and ESI ThoughtLab, which used publicly available information, including media reports, press releases and other material. One measure uses a consumer survey carried out by Branded Research in each of the countries. A further 20 variables draw on existing research by KPMG International and other organizations.

The variables under the four pillars are combined to arrive at an aggregate score for each. All variables are given equal weight in arriving at the overall pillar score. Before the data is combined it is normalized, as the variables have different measurement units, using the min-max method. This converts the variables to a range between zero and one, by subtracting the minimum value and dividing by the range of the variable values. Therefore the top-ranked country receives one and the bottom country zero.

Pillars have differing number of variables, so each pillar score is scaled to give them the same maximum possible value. This means that each pillar has equal weight in the overall score for each country.

42 2019 Autonomous Vehicles Readiness Index

Overview With the AV-focused agency variable, governments that spread the responsibility for AVs across a large —— Singapore leads this pillar overall and gains the number of government entities are given lower highest scores on five of its seven measures, marks; those that take the most common approach, including a World Economic Forum assessment of placing responsibility in an existing agency, gain of effectiveness of lawmaking bodies and middling marks; and those establishing an AV or a KPMG measure of government change transportation technology and innovation-focused readiness. agency that has sole responsibility gain the highest marks. As well as providing innovators with a —— Singapore also shares the top rating in an single point of contact, such focus demonstrates a assessment of its AV regulations with Australia, government’s commitment. Hungary and Singapore Finland and the Netherlands, and for having are awarded maximum marks, followed by Austria, a single government entity for AV work with New Zealand and the UAE. India gets the minimum Hungary. score, followed by Brazil and Mexico.

—— Along with Canada, the Czech Republic and Government readiness for change: scores are South Korea, Singapore also gains top marks in based on KPMG International’s 2017 Change the assessment of government-funded AV pilots. readiness index, updated for 2018.127 This is a composite index that assesses regulation, —— The UK, second-placed in this pillar, leads on government strategic planning and the rule of law a new measure assessing the data-sharing among other measures. Singapore, the UAE and environment, added as such sharing enables Sweden receive the highest scores and Brazil, greater collaboration between government and Mexico and Russia the lowest. companies in AV development. Effectiveness of legislative process and efficiency Methodology of the legal system in challenging regulations: The pillar is calculated from seven equally weighted both from the World Economic Forum’s Networked Readiness Index for 2018, as judged by business factors, one of which is new for the 2019 edition of 128 the index. executives in each country. The effectiveness of the legislative process is included to measure a AV regulations, government-funded AV pilots and country’s ability to pass regulations necessary for AV-focused agency: each of these three factors is the development of AVs. Singapore, New Zealand scored out of seven for this index based on a review and the UK gain the highest scores, while Brazil, of media articles, government press releases and Mexico and South Korea receive the lowest. government regulations. The measure on challenging regulations through the On AV regulations, countries that have regulations legal system is included to gauge the ability of AV that are supportive of AV use and place few manufacturers and others to challenge unfavorable restrictions on when, where and how testing of government rules. On this, Finland, the US and New AVs may occur are scored higher and countries Zealand receive the highest scores while Hungary, that place greater restrictions on testing are scored Brazil and the Czech Republic get the lowest ones. lower. The maximum score is awarded to Australia, Finland, Singapore and the Netherlands. The lowest Data-sharing environment: from the World scores go to Mexico, then Brazil and India. Wide Web Foundation’s Open data barometer for 2016, the latest edition which covers all 25 AVRI A similar approach is taken for government-funded countries.129 Countries adopting open and shared AV pilots. The maximum score is awarded to data approaches score higher, as this enables Canada, the Czech Republic, Singapore and South greater collaboration between government and Korea. Brazil and Mexico receive the minimum private industry to encourage AV development. The score, followed by India and Russia. UK, Canada and France rank highest while China, Hungary and the UAE rank lowest.

44 2019 Autonomous Vehicles Readiness Index

© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 7.85 Pillar 1: aggregate scores by country Pillar 1: (Policy andlegislation)normalized indicator values by country Source: KPMGInternational, 2019 The Netherlands Japan Australia Austria Country Germany Singapore Canada ntdKndm0970.857 0.917 United Kingdom Sweden Finland Israel New Zealand United States zc eulc0830.714 0.833 Czech Republic United Arab Emirates United Arab South Korea China Norway India Spain Russia France Hungary Brazil Mexico Singapore 7.60 United Kingdom © 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services andis aSwiss entitywith which the independent member firms ofthe KPMG network are affiliated. 7.53 New Zealand 7.30 Finland .0 1.000 1.000 1.000 1.000 1.000 AV AV regulations .1 0.929 0.917 .5 0.857 0.750 .1 0.643 0.917 .3 0.714 0.833 .5 0.714 0.750 .6 0.714 0.667 .3 0.929 0.833 .3 0.929 0.833 .5 0.714 0.750 .3 0.571 0.333 .3 0.857 0.833 .6 0.643 0.667 .3 0.714 0.833 .0 0.643 0.500 0.583 .0 0.857 0.500 .6 0.000 0.167 .0 0.143 0.000 .6 0.143 0.167 7.27 The Netherlands 6.92 Germany 6.90 1.000 AV department within government transportation dept. 0.714 0.714 0.714 Norway 6.82 Canada 6.65 United States 6.63 1.000 Government Capability pillar KPMG Change Readiness 0.673 0.845 0.892 0.766 0.778 0.856 0.527 0.622 0.968 0.990 0.663 0.648 0.480 0.537 0.380 0.484 0.435 0.341 0.367 0.232 0.133 0.221 0.093 0.000 Sweden 6.41 United Arab Emirates 6.24 Australia 6.23 1.000 Effectiveness of lawmaking bodies WEF — 0.847 0.882 0.786 0.732 0.679 0.792 0.422 0.732 0.785 0.748 0.622 0.456 0.624 0.780 0.216 0.231 0.364 0.425 0.460 0.330 0.304 0.417 0.200 0.000 Austria 6.12 France 5.74 Japan 5.71 1.000 of thelegal system regulations in challenging WEF —Efficiency 0.697 0.781 0.874 0.837 0.867 0.654 0.986 0.617 0.730 0.739 0.592 0.518 0.545 0.720 0.391 0.225 0.572 0.245 0.564 0.000 0.302 0.682 0.225 0.157 South Korea 4.88 2019 Autonomous Vehicles Readiness Index Czech Republic 4.84 Israel 4.79 Spain 1.000 1.000 1.000 1.000 AV pilots government-funded Number of 0.833 0.667 0.833 0.917 0.833 0.833 0.917 0.667 0.667 0.500 0.833 0.833 0.833 0.750 0.500 0.917 0.833 0.167 0.167 0.000 0.000 4.44 China 3.89 Hungary 3.37 Russia 1.000 Assessment of environment the data-sharing 0.411 0.743 0.451 0.688 0.621 0.674 0.870 0.771 0.625 0.081 0.765 0.629 0.815 0.691 0.766 0.309 0.331 0.668 0.000 0.046 0.360 0.288 0.670 0.488 2.50 India 1. Mexico 71 45 1. Brazil 23 Technology and innovation

Overview are scaled by national population for the index, with the result that Israel, Finland and Sweden gain the —— Israel is the clear leader with the top scores for highest scores and Czech Republic, Mexico, New industry partnerships, AV company headquarters Zealand and the UAE are ranked lowest. and AV investments, all adjusted for population. AV-related patents: this measure uses data from —— Japan leads on number of AV-related patents, PatSeer133 on all AV-related patents and patent with data from PatSeer to August 2018 finding applications made by August 2018 for the 5,272, followed by the US with 4,476 and China 25 countries. Numbers are scaled by national with 3,548. Japan also has the most patents per populations, and on this basis Japan, South Korea capita, the measure used in the index. and Germany score highest while the Czech Republic, Singapore and the UAE all get the —— The World Economic Forum finds that Finland has minimum score. the best availability of the latest technology and the US has the best capacity for innovation. Industry investments in AV: using data from Crunchbase Pro covering investments since —— Norway has by far the highest market share for 2007, this measure is based on the countries EVs of more than 39 percent. EVs are a precursor of investing organizations, rather than where for AVs, which are expected to be mostly electric. the investment is made. Again, this is scaled by national populations. The leading countries Methodology for investment on a per capita basis are Israel, The pillar is calculated from seven equally weighted Norway and the US while the Czech Republic, factors, two fewer than in the 2018 AVRI. Finland, Hungary, Mexico, New Zealand and the UAE all get the minimum score. Industry partnerships: the measure is scored out of seven for this index, based on a review of news Availability of the latest technology and capacity coverage from local and global media, research for innovation: both from the World Economic from consulting firms and blogs maintained by Forum’s Networked readiness index, based on AV industry experts. The rapid and disruptive responses from business executives.134 They judge nature of AV technology has made partnerships that Finland, Norway and Israel have the greatest between vehicle makers and technology suppliers access to the latest technologies and so receive essential, and many have been formed recently. the highest scores while Russia, China and Brazil Those countries that are home to companies that have the lowest. Executives see the US, Sweden have established a large number of partnerships and Israel as having the greatest capacities for are given higher scores. Canada, Germany, Israel, innovation and Hungary, Brazil and Mexico as South Korea and the US all gain the maximum having the least. score while Mexico scores the lowest, followed by Brazil, India and Russia. Market share of electric cars: data for most countries comes from the International Energy AV technology firm headquarters: based on a Agency’s Global EV outlook 2018 135 while list of AV-related technology companies built from information for other countries is gathered from those published by Vision System Intelligence130 country-specific data sources. Countries are scored and Comet Labs,131 updated for this edition with more highly for bigger market shares for EVs, given data from Crunchbase Pro on AV companies that most AVs will be electric. Norway, Sweden founded since the 2018 report.132 The US has the and the Netherlands rank highest, while the Czech highest number of headquarters at 258 followed Republic, Hungary, Israel and Russia all get the by the UK with 39 and Germany with 26. Numbers minimum score.

46 2019 Autonomous Vehicles Readiness Index

© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 6.38 Source: KPMGInternational,2019 Pillar 2: aggregate scores by country Pillar 2: (Technology andinnovation) normalized indicator values by country Japan h ehrad .6 0.129 0.667 The Netherlands Austria Australia Country Israel Germany Sweden South Korea Canada United States Norway ntdKndm0830.130 0.833 United Kingdom Finland Singapore zc eulc0700.000 0.750 Czech Republic France China United Arab Emirates United Arab India Spain Hungary Russia New Zealand Mexico Brazil Israel 4.94 Norway © 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services andis aSwiss entitywith which the independent member firms ofthe KPMG network are affiliated. 4.65 United States 4.56 Germany .0 1.000 1.000 1.000 1.000 1.000 1.000 partnerships Industry .1 0.126 0.917 .3 0.029 0.833 .5 0.179 0.750 .1 0.199 0.917 .3 0.044 0.833 .6 0.050 0.667 .3 0.000 0.833 .3 0.039 0.833 .6 0.000 0.667 .0 0.055 0.500 .5 0.005 0.750 .0 0.009 0.500 .6 0.067 0.667 .6 0.003 0.167 .0 0.000 0.000 .6 0.002 0.167 .6 0.001 0.167 4.28 Japan 4.20 Sweden 3.92 AV tech firm HQ 0.069 0.176 0.043 0.109 South Korea 3.91 Finland 3.87 United Kingdom 3.49 1.000 AV-related patents 0.045 0.009 0.752 0.340 0.214 0.863 0.044 0.246 0.016 0.097 0.119 0.131 0.000 0.000 0.026 0.184 0.000 0.062 0.029 0.017 0.002 0.008 0.036 0.009 The Netherlands 3.38 Canada 3.34 France 3.06 1.000 AV-related firms Investment in 0.155 0.030 0.141 0.009 0.124 0.040 0.000 0.123 0.071 0.034 0.044 0.046 0.000 0.073 0.000 0.068 0.000 0.005 0.017 0.000 0.002 0.000 0.003 0.002 Austria 3.04 United Arab Emirates 2.99 Singapore 2.74 1.000 the latest technology WEF — Availability of 0.946 0.971 0.751 0.931 0.843 0.937 0.633 0.855 0.907 0.782 0.735 0.685 0.787 0.771 0.743 0.576 0.543 0.023 0.462 0.371 0.121 0.269 0.000 0.046 New Zealand 2.52

2019 Autonomous Vehicles Readiness Index Australia 2.32 Czech Republic 1. China 77 1.000 innovation WEF —Capacityfor 0.968 0.662 0.901 0.588 0.904 0.438 0.813 0.778 0.855 0.576 0.780 0.797 0.713 0.606 0.666 0.573 0.509 0.310 0.257 0.000 0.322 0.146 0.180 0.136 1. Spain 65 1. Hungary 44 0.80 India 0.55 1.000 electric cars Market share of 0.000 0.031 0.041 0.026 0.161 0.033 0.066 0.043 0.069 0.028 0.043 0.004 0.028 0.002 0.028 0.003 0.000 0.056 0.010 0.000 0.002 0.001 0.000 0.001 Mexico 0.50 Russia 0.46 47 Brazil Infrastructure

Overview 4G coverage: based on data from researcher OpenSignal, this measure is included to reflect —— The Netherlands leads on infrastructure through the importance to AVs of wide access to mobile having the most EV charging stations scaled data networks.140 Most countries are developing by the size of its road network, as well as much-faster 5G networks, but so far only a few consistently high scores on the other measures. test networks are in place. South Korea, Japan and Norway have the most extensive 4G coverage —— Singapore tops a measure of high-performance while Brazil, Israel and Russia have the least. mobile network coverage from the GSM Association, while South Korea has the most Quality of roads: from the World Economic extensive 4G coverage, with connectivity being Forum’s Global competiveness report, assessed essential for AVs. by business executives in each country.141 AVs will work better on high-quality roads and their absence —— The UAE has the best-quality roads as assessed will limit a country’s adoption of them. The UAE, by the World Economic Forum, and leads on the Singapore and the Netherlands have the best roads change readiness of its technology infrastructure. on this measure while Brazil, Russia and Hungary Germany scores highest on a World Bank have the worst. measure of road infrastructure focused on logistics and trucking. Logistics infrastructure: this measure considers the quality of roads specifically for logistics, using Methodology the World Bank’s Logistic performance index 2018.142 It is included as freight is likely to be one of The pillar is calculated from six equally weighted the first users of AVs. Germany, Japan and Sweden factors, unchanged from the 2018 index. have the highest quality road infrastructure from a Density of EV charging stations: data for most logistics perspective while Russia, Mexico and India countries is from the International Energy Agency’s have the lowest. 136 Global EV outlook 2018 while information for Technology infrastructure change readiness: other countries is gathered from the US Bureau of scores are based on KPMG International’s 137 2017 Transportation Statistics and country-specific data Change readiness index, updated for 2018.143 This sources. Numbers of chargers are scaled by length measures the quality of the country’s technology of paved roads in each country, using data from the infrastructure, using a number of indicators, 138 CIA’s World factbook. As most AVs are likely to providing an additional measure of the technology be EVs, their adoption will require the availability infrastructure that will help support the use of AVs. of electric charging stations, so countries with a The UAE, Singapore and the Netherlands lead this higher density of charging stations score more. measure, with India, Mexico and China scoring The highest-scoring countries are the Netherlands, least. Norway and South Korea, while the lowest are India, Brazil and Russia.

Quality of mobile internet: a measure of mobile internet infrastructure assessed by the GSM Association, which represents mobile network operators. The measure awards availability of high- performance mobile internet network coverage, speed, the number of servers and network bandwidth, given AVs need to receive and transmit data.139 Singapore, Norway and Australia have the highest connectivity infrastructure scores while India, Russia and Mexico have the lowest.

48 2019 Autonomous Vehicles Readiness Index

© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. Pillar 3: (Infrastructure) normalized indicator values by country Pillar 3: aggregate scores by country 7.72 Source: KPMGInternational, 2019 The Netherlands Japan Austria Australia Country India Israel Germany zc eulc0070.590 0.057 Czech Republic China Canada Russia Brazil South Korea Sweden Spain Hungary Singapore Mexico United Arab Emirates United Arab United States ntdKndm0130.678 0.143 United Kingdom Finland France New Zealand Norway The Netherlands 6.62 Singapore © 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services andis aSwiss entitywith which the independent member firms ofthe KPMG network are affiliated. 6.48 Japan 6.23 South Korea 5.88 1.000 stations EV charging .0 0.000 0.294 0.406 0.000 0.593 0.046 0.033 0.062 .0 0.187 0.003 .0 0.420 0.003 .2 0.569 0.220 .0 0.819 0.747 0.007 0.058 .2 0.690 0.121 .5 0.747 0.256 .0 0.549 0.102 .2 0.887 0.725 0.523 0.121 .4 0.649 0.044 .5 0.700 0.806 0.157 0.675 0.862 0.008 0.039 0.005 .0 0.621 0.005 .6 0.643 0.064 0.090 United Arab Emirates 5.84 Sweden 5.80 1.000 GSMA globalconnectivity index —Infrastructure 0.772 Norway 5.69 United States 5.41 Australia 5.36 Austria 5.30 1.000 Gcvrg Qualityofroads from the WEF 4G coverage .2 0.268 0.721 .9 0.413 0.429 0.574 0.690 0.252 0.433 0.094 0.773 .0 0.067 0.105 .0 0.000 0.000 .2 0.454 0.529 .1 0.482 0.638 0.216 0.583 .2 0.875 0.923 0.488 .5 0.445 0.745 0.853 0.719 .8 0.445 0.780 .2 0.709 0.637 0.653 0.122 0.835 0.268 0.508 0.594 0.396 0.696 .2 0.749 0.620 .9 0.857 0.195 .5 0.933 0.756 .4 0.994 0.640 Finland 4.94 United Kingdom 4.91 1.000 global competiveness index 0.766 Germany 4.87 Spain 4.79 France 4.57 Canada 4.43 New Zealand 2019 Autonomous Vehicles Readiness Index 3.93 1.000 score LPI infrastructure 0.428 0.082 0.044 0.346 0.308 0.000 0.094 0.610 0.761 0.610 0.925 0.597 0.780 0.572 0.918 0.799 0.786 0.767 0.881 0.748 0.667 0.767 0.899 0.805 China 3.63 Czech Republic 3.60 Hungary 3.21 1.000 technology infrastructure score KPMG change readiness 0.353 0.000 0.176 0.686 0.412 0.725 0.490 0.235 0.667 0.412 0.784 0.784 0.588 0.667 0.706 0.588 0.784 0.706 0.745 0.784 0.588 0.667 0.784 0.882 Israel 2.13 Mexico 1.78 India 1.63 Russia 1.51

49 Brazil Consumer acceptance

Overview Population living in test areas: this measure uses data on cities carrying out AV testing collected by —— Singapore scores highest overall, partly due to all Bloomberg Philanthropies and Aspen Institute.145 of the city-state’s population living in an AV test The proportion of national populations living in test area. areas is then calculated based on city populations from the McKinsey Global Institute’s Urban World —— Indians, closely followed by Mexicans, are the app.146 The more people see AVs on the road, most accepting of AVs according to research the more comfortable that they are likely to use carried out for this report with 100 people in each them when they become available, so countries of the 25 countries. Britons then Americans are with a higher proportion of population that live in the least accepting. cities where AV pilots and testing are underway scored the highest. The countries with the highest —— Sweden leads on technology change readiness, proportions are Singapore, the Netherlands and based on KPMG research, with the Netherlands Canada. There are currently no AV testing areas in leading a World Economic Forum index on Austria, Hungary, India and Mexico. technology readiness. Civil society technology use: scores are based —— China leads on market penetration of ride-hailing, on this sub-indicator of KPMG International’s 2017 followed by the US and the UK, based on data Change readiness index, updated for 2018.147 This from Statista on the proportion of people who is included as the use of other types of consumer have used a ride-hailing app. technology indicates the potential for consumers to embrace AVs. The leading countries are Sweden, Methodology the Netherlands and Norway while the lowest- The pillar is calculated from five equally weighted scoring are India, Brazil and Russia. factors, with consumer opinions added for this version of the AVRI and ride-hailing market Consumer adoption of technology: scored using penetration moved from the technology and the World Economic Forum’s Global competiveness innovation pillar. report, which includes the availability of latest technologies, mobile broadband subscriptions, Consumer opinions of AVs: Branded Research144 internet access and internet bandwidth.148 The top asked 100 people from online panels in each of the countries are the Netherlands, the UK and Sweden 25 countries to respond to the following question: while India, China and Mexico score the lowest. “What is your general opinion of autonomous vehicles?” Branded Research actively adjusts Online ride-hailing market penetration: a 149 its overall audience and recruitment process to new measure using data from Statista on the ensure that the natural fallout on consumer studies percentage of people in each country who have is generally representative of each country, with used a ride-hailing service. Statista conducts a minimal margin of error. Branded Research nationally representative surveys in each country. conducted its research in September 2018 for 24 People in China, the US and the UK are most likely of the 25 countries, and in India in October 2018. to have used such a service, while those in India, More positive opinions produce higher scores, Japan and Hungary are least likely to have done so. reflecting the importance of public acceptance of AVs as to whether they will be adopted. Respondents in India, Mexico and the UAE were the most enthusiastic with those in the UK, the US and Canada the least.

50 2019 Autonomous Vehicles Readiness Index

© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. Pillar 4: (Consumeracceptance)normalized indicator values by country Pillar 4: aggregate scores by country 0 1 2 3 4 5 6 7 8 Source: KPMGInternational,2019 Japan The Netherlands Austria Australia Country India Czech Republic Russia Germany China South Korea Israel Hungary Brazil Spain Canada Mexico Sweden Singapore France United Kingdom United Arab Emirates United Arab United States Finland New Zealand Norway 6.87 Singapore 6.58 © 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services andis aSwiss entitywith which the independent member firms ofthe KPMG network are affiliated. The Netherlands 6.11 Norway 5.81 Sweden 1.000 AV acceptance 5.78 Consumer survey dataon 0.866 0.591 0.834 0.992 0.560 0.442 0.725 0.693 0.348 0.364 0.783 0.372 0.372 0.201 0.000 0.489 0.529 0.968 0.103 0.489 0.599 0.466 0.654 0.466 Finland 5.59 United States 5.36 United Arab Emirates 5.18 Israel 5.18 1.000 Percent ofpopulationliving in test areas 0.000 0.000 0.000 0.103 0.000 0.000 0.301 0.020 0.000 0.000 0.209 0.043 0.133 0.366 0.670 0.298 0.524 0.282 0.219 0.355 0.288 0.339 0.351 0.775 New Zealand 5.17 United Kingdom 5.04 Canada 4.84 Australia 4.75 Germany 1.000 technology usesubindex KPMG change readiness 0.000 0.176 0.346 0.174 0.225 0.529 0.505 0.362 0.571 0.792 0.685 0.222 0.932 0.884 0.848 0.924 0.559 0.886 0.787 0.852 0.929 0.960 0.985 0.832 4.28 China 4.21 France 4.20 Austria 4.18

2019 Autonomous Vehicles Readiness Index Spain 4.03 1.000 readiness (GCI) WEF technology WEF 0.000 0.444 0.613 0.450 0.339 0.738 0.895 0.784 0.793 0.884 0.862 0.330 0.946 0.806 0.856 0.995 0.947 0.922 0.835 0.966 0.888 0.931 0.987 0.921 Japan 3.93 South Korea 3.64 Czech Republic 3.34 Mexico 1.000 penetration Ridesharing market 0.000 0.207 0.147 0.223 0.299 0.196 0.098 0.293 0.266 0.310 0.217 0.255 0.261 0.223 0.652 0.359 0.261 0.168 0.832 0.614 0.565 0.424 0.429 0.408 3.21 Brazil 3.06 Hungary 3.05 Russia 1.80

51 India Endnotes

1 ‘Honda Joins with Cruise and General Motors 11 Marketplace of change: automobile 22 Automated and electric vehicles act 2018, to Build New Autonomous Vehicle’, Honda insurance in the era of autonomous House of Commons library, 15 August 2018: News, 3 October 2018: http://hondanews. vehicles, KPMG in the US, October 2015: https://researchbriefings.parliament.uk/ com/releases/honda-joins-with-cruise-and- https://assets.kpmg.com/content/dam/ ResearchBriefing/Summary/CBP-8118 general-motors-to-build-new-autonomous- kpmg/pdf/2016/06/id-market-place-of- vehicle and ‘Ford Creates ‘Ford Autonomous change-automobile-insurance-in-the-era-of- 23 ‘Yandex launches the first autonomous ride- Vehicles LLC’; Strengthens Global autonomous-vehicles.pdf hailing service in Europe’, Yandex, 28 August Organization to Accelerate Progress, Improve 2018: https://yandex.com/company/blog/ Fitness’, Ford Media Center, 24 July 2018: 12 ‘UK motor insurance market could yandex-launches-the-first-autonomous-ride- https://media.ford.com/content/fordmedia/ shrink up to 41% by 2040 — Bank hailing-service-in-europe fna/us/en/news/2018/07/24/ford-creates-ford- of England’, Louie Bacani, Insurance autonomous-vehicles-llc.html Business, 20 March 2017: https://www. 24 ‘Alphabet’s Waymo begins charging insurancebusinessmag.com/uk/news/ passengers for self-driving cars’, Tim 2 Global status report on road safety 2018, technology/uk-motor-insurance-market- Bradshaw and Richard Waters, Financial World Health Organization, December could-shrink-up-to-41-by-2040--bank-of- Times, 26 October 2018: https://www. 2018. https://www.who.int/violence_injury_ england-63108.aspx ft.com/content/7980e98e-d8b6-11e8-a854- prevention/road_safety_status/2018/en/ 33d6f82e62f8 13 ‘Lov om utprøving av selvkjørende kjøretøy’ 3 ‘Human error as a cause of vehicle crashes’, (text of new law in Norwegian), Lovdata 25 ‘Office of Future Transport Technologies Bryant Walker Smith, Center for Internet Foundation: https://lovdata.no/dokument/NL/ revealed’, Australian deputy prime minister, and Society at Stanford Law School, 18 lov/2017-12-15-112 4 October 2018: http://minister.infrastructure. December 2013: https://cyberlaw.stanford. gov.au/mccormack/releases/2018/october/ edu/blog/2013/12/human-error-cause-vehicle- 14 ‘Driverless car tests roll out on south China mm178_2018.aspx crashes streets’, Charles Clover, Yuan Yang and Sherry Fei Ju, Financial Times, 5 February 26 ‘Ford, Walmart and Postmates team up for 4 ‘Uber halts autonomous car tests after 2018: https://www.ft.com/content/8481ee48- self-driving goods delivery’, Brian Wolf, Ford, fatal crash in Arizona’, Mark Bergen and 0975-11e8-8eb7-42f857ea9f09 14 November 2018: https://media.ford.com/ Eric Newcomer, Bloomberg, 19 March content/fordmedia/fna/us/en/news/2018/11/14/ 2018: https://www.bloomberg.com/news/ 15 ‘Toespraak van minister Van Nieuwenhuizenbij ford--walmart-and-postmates-team-up-for- articles/2018-03-19/uber-autonomous-car- de opening van de Intertraffic Beurs‘, speech self-driving-goods-deliv.html and Custom involved-in-fatal-crash-in-arizona and ‘Tesla's by Cora Van Nieuwenhuizen (in English), Autonomous Cargo Vans to Deliver Groceries Autopilot Was Involved in Another Deadly Car Government of the Netherlands, 26 March in Walmart’s Pilot with Udelv, Walmart, Crash’, Jack Stewart, Wired, 30 March 2018: 2018: https://www.rijksoverheid.nl/regering/ January 2019: https://news.walmart. https://www.wired.com/story/tesla-autopilot- bewindspersonen/cora-van-nieuwenhuizen/ com/2019/01/08/custom-autonomous-cargo- self-driving-crash-california/ documenten/toespraken/2018/03/26/ vans-to-deliver-groceries-in-walmarts-pilot- speech-by-cora-van-nieuwenhuizen-minister- with-udelv 5 ‘2017 safest year on record for commercial of-infrastructure-and-water-management-at- passenger air travel: groups’, David Shepardson, the-opening-of-intertraffic-amsterdam-20- 27 ‘Electric driverless truck set to gain approval Reuters, 1 January 2018: https://www.reuters. march-2018 for public roads’, Patrick McGee, Financial com/article/us-aviation-safety/2017-safest-year- Times, 2 December 2018: https://www. on-record-for-commercial-passenger-air-travel- 16 ‘Uber halts autonomous car tests after fatal ft.com/content/f76ef090-f47f-11e8-ae55- groups-idUSKBN1EQ17L crash in Arizona’ as above. df4bf40f9d0d

6 ‘Autonomy delivers: An oncoming revolution in 17 ‘California scraps safety driver rules for 28 ‘Toespraak van minister Van Nieuwenhuizenbij the movement of goods,’ KPMG LLP, November self-driving cars’, Daisuke Wakabayashi, de opening van de Intertraffic Beurs‘ as above 2018: https://advisory.kpmg.us/content/dam/ New York Times, 26 February 2018: https:// advisory/en/pdfs/2018/autonomy-delivers-final- www.nytimes.com/2018/02/26/technology/ 29 ‘Self-driving vehicles’ (in English), Government secured-web.pdf driverless-cars-california-rules.html of the Netherlands: https://www.government. nl/topics/mobility-public-transport-and-road- 7 ‘New survey data reveals increases in driver 18 ‘EU motors ahead with rules for self-driving safety/self-driving-vehicles compensation’, American Trucking Association, cars’, Peter Campbell, Financial Times, 14 May 27 March 2018: https://www.trucking.org/ 2018: https://www.ft.com/content/f3a76e4c- 30 ‘VDL scoort miljoenenorders voor productie article/New-Survey-Data-Reveals-Increases-in- 5772-11e8-b8b2-d6ceb45fa9d0 zelfrijdende voertuigen’ (in Dutch), Het Driver-Compensation Financieele Dagblad, 24 October 2017: 19 ‘Japan looks to launch driverless car system https://fd.nl/ondernemen/1224174/vdl-scoort- 8 The automobile industry pocket guide 2018- in Tokyo by 2020’, Stanley White, Reuters, miljoenenorders-voor-productie-zelfrijdende- 19, European Automobile Manufacturers 4 June 2018: https://www.reuters.com/article/ voertuigen Association: https://www.acea.be/ us-japan-economy-strategy/japan-looks-to- publications/article/acea-pocket-guide launch-driverless-car-system-in-tokyo-by-2020- 31 ‘NTU, LTA and JTC unveil Singapore’s first idUSKCN1J00VN autonomous vehicle test centre’, Land 9 ‘UK and seven major companies join Transport Authority, 22 November 2017: campaign for vehicle electrification’, 20 ‘Ford Creates ‘Ford Autonomous Vehicles https://www.lta.gov.sg/apps/news/page. International Energy Agency, 11 September LLC’; Strengthens Global Organization to aspx?c=2&id=10ceddae-472a-4920-8d4c- 2018: https://www.iea.org/newsroom/ Accelerate Progress, Improve Fitness’, e73babfcecb0 news/2018/september/uk-and-seven- Ford Media Center, 24 July 2018: https:// major-companies-join-campaign-for-vehicle- media.ford.com/content/fordmedia/fna/ 32 ‘A self-driving shuttle bus will hit the road at electrification.html us/en/news/2018/07/24/ford-creates-ford- NUS from March next year — here’s what you autonomous-vehicles-llc.html need to know’, Sean Lim, 12 November 2018, 10 ‘Reinventing the wheel’, Economist Business Insider Singapore: https://www. Intelligence Unit, June 2018: https:// 21 ‘Uber’s Vision of Self-Driving Cars Begins businessinsider.sg/a-self-driving-shuttle-bus- innovationmatters.economist.com/ to Blur’, Mike Isaac, Daisuke Wakabayashi will-hit-the-road-at-nus-from-march-next-year- reinventing-the-wheel-moving-eiu and Kate Conger, 19 August 2018, New York heres-what-you-need-to-know/ Times: https://www.nytimes.com/2018/08/19/ technology/uber-self-driving-cars.html

52 2019 Autonomous Vehicles Readiness Index

© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 33 ‘Dyson chooses Singapore over Britain to 47 ‘Volvo's self-driving cars will soon hit the 58 https://publications.parliament.uk/pa/ build electric car’, Paul Sandle, Reuters, 23 streets in Sweden’, The Local, 14 September cm201719/cmselect/cmtrans/590/report- October 2018: https://www.reuters.com/ 2018: https://www.thelocal.se/20180914/ overview.html article/us-britain-dyson-singapore/dyson- volvos-self-driving-cars-will-soon-hit-the-road- chooses-singapore-over-britain-to-build-electric- in-sweden 59 https://www.lawcom.gov.uk/project/ car-idUSKCN1MX2MO automated-vehicles/ 48 ‘Electric driverless truck set to gain approval 34 ‘Lov om utprøving av selvkjørende kjøretøy’ as for public roads’, as above. 60 https://www.gov.uk/government/news/new- above cyber-security-standard-for-self-driving-vehicles 49 ‘Martti, developed for adverse weather 35 ‘Autonomous future at Forus’, Kolumbus: conditions, is the first Finnish robot car to 61 ‘Federal Government adopts action plan https://www.kolumbus.no/en/news-archive/ challenge snow and ice’, VTT, 15 December on automated driving’, Federal Ministry of autonomous-future-at-forus/ 2017: https://www.vttresearch.com/media/ Transport and Digital Infrastructure, 28 August news/martti-developed-for-adverse-weather- 2017: https://www.bmvi.de/SharedDocs/ 36 ‘Scandinavia gets its first autonomous public conditions-is-the-first-finnish-robot-car-to- EN/publications/strategy-for-automated-and- buses, but there's a big catch’, Stig Øyvann, challenge-snow-and-ice and ‘VTT’s robot car, connected-driving.pdf ZDNet, 18 May 2018: https://www.zdnet.com/ Martti, now “speaks 5G” and takes another article/scandinavia-gets-its-first-autonomous- step towards full automation’, VTT, 20 August 62 ‘Autonomous driving levels 0 to 5: public-buses-but-theres-a-big-catch/ 2018: https://www.vttresearch.com/media/ Understanding the differences’, Hope Reese, news/vtt%E2%80%99s-robot-car-martti-now- TechRepublic, 20 January 2016: https://www. 37 ‘Autonomous vehicles: expect up to 50 speaks-5g-and-takes-another-step-towards-full- techrepublic.com/article/autonomous-driving- driverless buses on Oslo streets by 2021’, Stig automation levels-0-to-5-understanding-the-differences/ Øyvann, ZDNet, 23 October 2018: https://www.zdnet.com/article/autonomous- 50 ’Nordic conditions drive automated vehicles 63 ‘Germany launches task force to kickstart shift vehicles-expect-up-to-50-driverless-buses-on- to the Finnish line’, Good News Finland, 9 to sustainable mobility’, Sören Amelang, Clean oslo-streets-by-2021/ August 2017: http://www.goodnewsfinland. Energy Wire, 19 September 2018: https:// com/feature/nordic-conditions-drive- www.cleanenergywire.org/news/germany- 38 Applied Autonomy website: https://www. automated-vehicles-to-finnish-line/ launches-task-force-kickstart-shift-sustainable- appliedautonomy.no/en/home/ mobility 51 ‘Driverless buses take visitors to the Kivistö 39 ‘Ta en selvkjørende buss til stranden i Housing Fair from 10 July’, HSL, 8 July 2015: 64 ‘Mobility for people’, Zukunftsnetz Mobilität sommer!’ (‘Take a self-drive bus to the https://www.hsl.fi/en/news/2015/driverless- NRW: https://www.zukunftsnetz-mobilitaet. beach this summer!’), Acando Oslo: https:// buses-take-visitors-kivisto-housing-fair-10- nrw.de/sites/default/files/downloads/znm-nrw- www.acando.no/hva-vi-tror-pa/smart-city/ july-6904 infoflyer_znm_din-lang-en_x3-3.pdf selvkjorende-buss-pa-fornebu/ 52 ‘Self-driving bus on Helsinki RobobusLine 65 ‘Mohammed bin Rashid approves Dubai 40 Preparing for the future of transportation: goes to scheduled service’, City of Helsinki, Autonomous Transportation Strategy’, automated vehicles 3.0, US Department of 15 May 2018: https://www.hel.fi/uutiset/ Government of Dubai, 25 April 2016: https:// Transportation, 4 October 2018: https://www. en/helsinki/robobus-line-goes-to-scheduled- www.dubaifuture.gov.ae/mohammed- transportation.gov/av/3 service bin-rashid-approves-dubai-autonomous- transportation-strategy/ 41 ‘News’, DriveOhio: https://www.driveohio.org/ 53 ‘Muji and Sensible 4 created Gacha – the news/ first autonomous shuttle bus in the world for 66 ‘Road to safety: Self-driving cars in the all weather conditions’, Sensible 4, Epressi, Middle East’, Alicia Buller, Computer 42 Michigan Economic Development 31 October 2018: https://www.dezeen. Weekly 10 November 2016: https://www. Corporation: https://www.michiganbusiness. com/2018/11/02/muji-sensible-4-gacha- computerweekly.com/news/450402609/ org/ autonomous-shuttle-bus-finland-driverless- Road-to-safety-Self-driving-cars-in-the-Middle- design/ East 43 ‘Gov Charlie Baker signs Massachusetts electric vehicle bill into law’, Shira Schoenberg, 54 ‘Anyone can be a cabbie — new law 67 ‘Smart Dubai and IBM to offer first MassLive, 13 January 2017: https://www. transforms Finnish taxi trade’, YLE, 1 July government-endorsed blockchain masslive.com/politics/index.ssf/2017/01/gov_ 2018: https://yle.fi/uutiset/osasto/news/ platform’, Smart Dubai, 30 October 2018: charlie_baker_signs_massachusetts_electric_ anyone_can_be_a_cabbie__new_law_ https://smartdubai.ae/newsroom/news- vehicle_bill_into_law.html transforms_finnish_taxi_trade/10283444 details/2018/10/30/smart-dubai-and-ibm-to- offer-first-government-endorsed-blockchain- 44 Connected and Automated Vehicle Program, 55 ‘The new Road Traffic Act aims for a platform Virginia Department of Transportation, safer future’, Ministry of Transport and 2018: http://www.virginiadot.org/programs/ Communications, Finnish Government, 68 ‘Masdar City launches autonomous shuttle’, connected_and_automated_vehicles.asp 23 November 2017: https://valtioneuvosto.fi/ Gulf News, 22 October 2018: https:// en/article/-/asset_publisher/uusi-tieliikennelaki- gulfnews.com/uae/transport/masdar-city- 45 ‘World's first electrified public road opens tahtaa-turvallisempaan-tulevaisuuteen launches-autonomous-shuttle-1.2292558 in Sweden’, The Local, 13 April 2018: https:// www.thelocal.se/20180413/worlds-first- 56 Automated and electric vehicles act 2018 69 ‘Japan looks to launch driverless car system in electric-road-opens-in-sweden Tokyo by 2020’ as above. 57 From science fiction to reality: people in 46 ‘Stockholm gets Scandinavia's first London and Edinburgh set to be the first 70 ‘Driverless shuttle company signs $20m driverless buses on public road’, Emma to trial self-driving vehicle servicesí, UK deal with Chinese’, Chris Hutching, Stuff, Löfgren, The Local, 27 December 2017: Department for Business, Energy and 21 June 2018: https://www.stuff.co.nz/ https://www.thelocal.se/20171227/ Industrial Strategy, 22 November 2018: business/104824042/driverless-shuttle- stockholm-gets-scandinavias-first- https://www.gov.uk/government/news/from- company-signs-20m-production-deal-with- driverless-buses-on-public-road science-fiction-to-reality-people-in-london- chinese and-edinburgh-set-to-be-the-first-to-trial-self- driving-vehicle-services

2019 Autonomous Vehicles Readiness Index 53

© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 71 ‘Ambitious plan to use Christchurch red zone for 82 ‘Intel buys Mobileye in $15.3 billion bid to lead 91 ‘Slovenia, Austria, Hungary to create driverless autonomous vehicle tests’, Michael Hayward, self-driving car market’, Mark Scott, New York region’, Slovenia Times, 25 March 2018: http:// Stuff, 2 November 2018: https://www.stuff. Times, 13 March 2017: https://www.nytimes. www.sloveniatimes.com/slovenia-austria- co.nz/business/108296150/Ambitious-plan-to- com/2017/03/13/business/dealbook/intel- hungary-to-create-driverless-region use-Christchurch-red-zone-for-autonomous- mobileye-autonomous-cars-israel.html vehicle-tests 92 Action Programm on Automated Mobility 83 ‘Daimler and Mizmaa Ventures co-lead 2019-2022: https://www.bmvit.gv.at/en/ 72 ‘Air taxi trials possible in six years as round B at Anagog’, Anagog, 27 February service/publications/downloads/action_ tech company trials flying vehicle in 2018: https://www.anagog.com/project/ automated_mobility_2019-2022_ua.pdf Canterbury’, Michael Hayward, Stuff, daimler-mizmaa-ventures-co-lead-round- 13 March 2018: https://www.stuff.co.nz/ b-anagog-mobility-status-ai-innovator/, 93 ALP.Lab, 26 June 2018: https://www.alp-lab. technology/102203642/air-taxi-trials-possible- ‘BP invests in ultra-fast charging battery at/2018/07/03/26-06-2018/ in-six-years-as-tech-company-trials-flying- company StoreDot’, BP, 22 May 2018: vehicle-in-canterbury https://www.bp.com/en/global/corporate/ 94 ‘BMW starts cooperation with TTTech Auto media/press-releases/bp-invests-in-ultra- for developing automated driving functions 73 ‘Testing autonomous vehicles in New fast-charging-battery-company-storedot. at the highest safety level’. TTTech Auto, 5 Zealand’, NZ Transport Agency: https:// html and ‘SoftWheel is Delighted to November 2018: https://www.tttech-auto. www.nzta.govt.nz/vehicles/vehicle-types/ Announce Investment by Mitsubishi com/press/bmw-starts-cooperation-with- automated-and-autonomous-vehicles/testing- Corporation’, Business Wire, 27 September tttech-auto-for-developing-automated-driving- autonomous-vehicles-in-new-zealand/ 2018: https://www.businesswire. functions-at-the-highest-safety-level/ and com/news/home/20180927005303/ ‘SAIC and TTTech Establish Joint Venture in 74 ‘Ontario Government Supports Innovation en/SoftWheel-Delighted-Announce- Shanghai to Deploy the “Smart Brain” for and Growth in Automated Vehicle Industry’, Investment-Mitsubishi-Corporation Autonomous Driving Cars in China’, TTTech Ontario Ministry of Transport, 22 January Auto, 14 March 2018: https://www.tttech-auto. 2019: https://news.ontario.ca/mto/ 84 Automated vehicles in Australia, National com/press/saic-and-tttech-establish-joint- en/2019/01/ontario-government-supports- Transport Commission: https://www.ntc.gov. venture-in-shanghai-to-deploy-the-smart-brain- innovation-and-growth-in-automated- au/roads/technology/automated-vehicles-in- for-autonomous-driving-cars-in-china/ vehicle-industry.html australia/ 95 ‘Driverless shuttles on test in La Défense’, 75 Autonomous Vehicle Innovation Network: 85 ‘Office of Future Transport Technologies Metro Report International, 5 July 2017: https://www.avinhub.ca/ and ‘Automotive revealed’ as above https://www.metro-report.com/news/single- Supplier Competitiveness Improvement view/view/driverless-shuttles-on-test-in-la- Program’, Ontario Centres of Excellence: 86 ‘NSW Budget caters for the future of defense.html https://www.oce-ontario.org/programs/ driverless cars’, Transport for NSW, 18 June commercialization/automotive-supplier- 2018: https://www.transport.nsw.gov.au/ 96 ‘World premiere in Lyon’, Keolis, 2 September competitiveness-improvement-program- news-and-events/media-releases/nsw- 2016: https://www.keolis.com/en/media/ ascip budget-caters-for-future-of-driverless-cars and press-releases/world-premiere-lyon 'Automated Vehicles Get The Green Light', 76 Autonomous vehicles and the future Minister for Roads and Road Safety, 23 97 ‘Development of autonomous vehicles — of work in Canada, Information and February 2018: https://www.premier.vic.gov. strategic orientations for public Communications Technology Council, au/automated-vehicles-get-the-green-light/ action’ (summary in English), French August 2018: https://www.ictc-ctic.ca/ Government, May 2018: https://www. wp-content/uploads/2018/01/ICTC_- 87 Connected and automated vehicles, ecologique-solidaire.gouv.fr/sites/default/ Autonomous-Vehicles-and-The-Future-of- Austroads, 22 August 2018: https:// files/18029_D%C3%A9veloppement- Work-in-Canada-1-1.pdf austroads.com.au/drivers-and-vehicles/ VA_8p_EN_Pour%20BAT-3.pdf connected-and-automated-vehicles 77 ‘Korea builds urban infrastructure for testing 'Connected and automated vehicles (CAV) 98 ‘Renault’s EZ-GO robot taxi is the most socially autonomous vehicles’, Jun Ji-hye, Korea Times, open data Recommendations', Austroads, responsible concept in Geneva’, Vlad Savov, The 10 December 2018: http://www.koreatimes. 23 August 2018: https://austroads.com.au/ Verge, 8 March 2018: https://www.theverge. co.kr/www/tech/2018/12/133_260137.html publications/connected-and-automated- com/2018/3/8/17097016/renault-ez-go-robot-taxi- vehicles/ap-r581-18; and 'Webinar: geneva-motor-show-2018 78 ‘KT tests driverless bus at Korean airport’, operations of automated heavy vehicles in Cho Mu-Hyun, ZDNet, 20 November 2018: remote and regional areas', Austroads, 25 99 Faurecia: http://www.faurecia.com/en and https://www.zdnet.com/article/kt-tests-driverless- September 2018: https://austroads.com.au/ Valeo: https://www.valeo.com/en/ bus-at-korean-airport/ publications/freight/web-r579-18 100 ‘Arranca la Plataforma de Vehículo 79 ‘New Smart Traffic System to Enhance Safety 88 'Victorian connected and automated vehicle Conectado 3.0’ (in Spanish), ABC, 16 of Autonomous Cars’, KBS World Radio, 27 trials', Transurban: https://cavs.transurban. November 2018: https://www.abc.es/motor/ March 2018: http://world.kbs.co.kr/service/ com/content/dam/cavs/documents/victorian- reportajes/abci-arranca-plataforma-vehiculo- news_view.htm?lang=e&Seq_Code=135015 trials-report.pdf conectado-30-201811121517_noticia.html

80 ‘Samsung Reveals DRVLINE™ Platform, 89 'Round Australia electric highway', Tesla 101 ‘Barcelona introduces Mobileye to city streets’ Takes Bold Step Toward Autonomous Future’, Owners Australia: https://www.teslaowners. Mobileye, 5 December 2017: https://www. Samsung, 1 August 2018: https://news. org.au/round-australia mobileye.com/en-uk/2017/12/05/barcelona- samsung.com/us/samsung-reveals-drvline- introduces-mobileye-city-streets/ platform-autonomous-future/ 90 'Advice on automated and zero emissions vehicles infrastructure', Infrastructure 102 Auto C-its: https://www.autocits.eu/ 81 Issues Related to Regulation Reforms to Australia, October 2018: http://www. Activate Autonomous Vehicle Industry”, infrastructurevictoria.com.au/sites/ 103 ‘Successful tests mark important milestone IITP, 7 September 2018: https://www. default/files/files/AVZEV/Advice%20 towards a 5G future’, Lancaster University, iitp.kr/kr/1/notice/reportAndClarify/view. on%20automated%20and%20zero%20 10 October 2018: http://www.lancaster. it?ArticleIdx=3222&count=true emissions%20vehicles%20-%20 ac.uk/news/successful-tests-mark-important- October%202018.PDF milestone-towards-a-5g-future

54 2019 Autonomous Vehicles Readiness Index

© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 104 ‘BMW to build Czech test track for self-driving 119 ‘Stuck in traffic, Indians are desperate for self- 131 ‘263 self-driving car startups to watch’, cars’, Andreas Cremer, Reuters, 15 December driving cars’, Suneera Tandon, Quartz India, Taylor Stewart, Comet Labs, 10 May 2017: 2017: https://www.reuters.com/article/us- 18 July 2018: https://qz.com/india/1329942/ https://blog.cometlabs.io/263-self-driving-car- bmw-czech-investment-idUSKBN1E90Y5 indians-are-desperate-for-autonomous-cars/ startups-to-watch-8a9976dc62b0

105 ‘Draft bill facilitates autonomous car usage 120 ‘Metro 3 to get made in India driverless 132 Crunchbase Pro: https://about.crunchbase. in the Czech Republic’, Tomáš Matejovský trains’, Chittaranjan Tembhekar, Times of India, com/products/crunchbase-pro/ and Petr Beneš, Lexology, 20 June 2018: 20 July 2018: https://timesofindia.indiatimes. https://www.lexology.com/library/detail. com/city/mumbai/metro-3-to-get-made-in- 133 PatSeer: https://patseer.com/ aspx?g=e4bb3c1a-3c28-4aeb-8741- india-driverless-trains/articleshow/65061055. 13f3a712e77a cms 134 Networked readiness index as above.

106 ‘Driverless car tests roll out on south China 121 ‘9 Startups In India Working On Self Driving 135 Table A7, p110, Global EV Outlook 2018, streets’ as above. Technology’, Srishti Deoras, Analytics International Energy Agency: https:// India, 28 November 2017: https://www. webstore.iea.org/global-ev-outlook-2018 107 ‘Baidu launches public road tests of analyticsindiamag.com/9-startups-india- autonomous cars in China’, Charles Clover, working-self-driving-technology/ 136 Tables A10-A12, pp112-13, Global EV outlook Emily Feng and Sherry Fei Ju, 23 November 2018 as above. 2017, Financial Times: https://www.ft.com/ 122 ‘Revv partners with Mobileye to make its content/8c506d06-d02d-11e7-b781- cars safer’, ANI, 1 November 2017: https:// 137 Bureau of Transportation Statistics: https:// 794ce08b24dc www.aninews.in/news/business/business/ www.bts.gov/ revv-partners-with-mobileye-to-make-its-cars- 108 ‘KPMG releases the leading AutoTech 50 List safer201711011616160003/ 138 Roadways data, World factbook, CIA: https:// in China for the first time’, 28 March 2018, www.cia.gov/library/publications/resources/ KPMG China: https://home.kpmg.com/cn/en/ 123 ‘Brazil approves tax breaks for Ford, Fiat, the-world-factbook/fields/2085.html home/news-media/press-releases/2018/03/ other automakers’, Maria Carolina Marcello, the-leading-autotech-50-list-in-china.html Reuters, 9 November 2018: https:// 139 GSMA Mobile connectivity index, uk.reuters.com/article/uk-brazil-autos/ GSM Association: https://www. 109 RoboSense: https://www.robosense.ai/, brazil-approves-tax-breaks-for-ford-fiat-other- mobileconnectivityindex.com/#year=2017 Surestar: http://www.isurestar.com/index. automakers-idUKKCN1ND32L php/en-Index.html and Horizon Robotics: 140 The state of LTE, OpenSignal, February 2018: http://en.horizon.ai/ 124 ‘Intelligent Autonomous Robotic Automobile’, https://opensignal.com/reports/2018/02/state- Laboratório de Computação de Alto of-lte 110 Automotive Proving Ground Zala: https:// Desempenho, Federal University of Espírito zalazone.hu/en/ Santo: http://www.lcad.inf.ufes.br/wiki/index. 141 The global competitiveness report 2018, php/IARA World Economic Forum: http://reports. 111 AImotive: https://aimotive.com/ weforum.org/global-competitiveness- 125 ‘Brazilian university tests self-driving taxi report-2018/ 112 ‘BMW Group to expand production network service’, Elton Alisson, Agência FAPESP, in Europe’, 31 July 2018, BMW Group. 26 August 2015: http://agencia.fapesp.br/ 142 Logistics performance index, The World Bank: https://www.bmwgroup-plants.com/ brazilian-university-tests-self-driving-taxi- https://lpi.worldbank.org/ debrecen/en/aktuelles/new-plant.html service/21758/ 143 2017 Change readiness index as above. 113 ‘Slovenia, Austria, Hungary to create 126 ‘Toyota reveals world-first flexible fuel driverless region’ as above hybrid prototype in Brazil’, Toyota, 20 March 144 Branded Research: https://gobranded.com/ 2018: https://newsroom.toyota.co.jp/en/ 114 ‘Yandex.taxi’s self-driving car conducts winter corporate/21633112.html 145 ‘Initiative on cities and autonomous vehicles’, testing on Moscow’s public streets’, Yandex, Bloomberg Philanthropies and Aspen 16 February 2018: https://yandex.com/ 127 2017 Change readiness index, KPMG Institute: http://avsincities.bloomberg.org/ company/blog/self-driving-city/ International, data updated for 2018: https://home. kpmg.com/xx/en/home/insights/2017/07/2017- 146 ‘Urban world: what’s next?’, McKinsey 115 ‘Yandex launches the first autonomous ride- change-readiness-index.html Global Institute, October 2016 : https://www. hailing service in Europe’ as above mckinsey.com/mgi/overview/in-the-news/ 128 Networked readiness index, World Economic urban-world-app 116 ‘Russia to rapidly scale 5G following launch of Forum, 2018: http://reports.weforum.org/ first 5G networks in 2020, finds new GSMA network-readiness-index/ 147 2017 Change readiness index as above. study’, Associated Press, 30 October 2018: https://www.apnews.com/5dfe72f2543a49d 129 Open data barometer fourth edition, World 148 The global competitiveness report 2018 as e977a2ca99a7e1a82 Wide Web Foundation, 2016: https:// above. opendatabarometer.org/4thedition/ 117 ‘Mexican auto parts makers see new trade 149 Statista (https://www.statista.com/ deal boosting output’, Sharay Angulo and 130 ‘Segmenting the autonomous vehicle outlook/368/ride-hailing) Anthony Esposito, Reuters, 2 October 2018: value chain: a look at who is in the https://www.reuters.com/article/us-trade-nafta- “driverless” seat’, Cision PR Web, 8 June autoparts/mexican-auto-parts-makers-see-new- 2016: http://www.prweb.com/releases/ trade-deal-boosting-output-idUSKCN1MB3XU vsi/segmentsautonomousvehicle/ prweb13472308.htm 118 ‘Mexico grows as world leader on energy reform and renewables’, Mary DeFilippe, Renewable Energy World, 11 April 2018: https://www.renewableenergyworld.com/ ugc/articles/2018/03/01/mexico-reform-and- renewables.html

2019 Autonomous Vehicles Readiness Index 55

Global Head of Infrastructure Richard Threlfall T: +44 113 231 3437 E: [email protected]

Australia Germany Norway Praveen Thakur Moritz Püstow Ketil Timm Marcussen T: +61 39 288 5808 T: +49 30 530199 120 T: +47 40 63 93 35 E: [email protected] E: [email protected] E: [email protected]

Austria Hungary Russia Werner Girth Márton Zsótér Stepan Svetankov T: +43 131 332 3690 T: +3618875549 T: +74 95 937 4444 E: [email protected] E: [email protected] E: [email protected]

Brazil India Singapore Mauricio Endo Santosh Kamath Satya Ramamurthy T: +55 113 940 8322 T: +91 226 134 9403 T: +65 6213 2060 E: [email protected] E: [email protected] E: [email protected]

Canada Israel South Korea Colin Earp Hillel Schuster Hyo-Jin Kim T: +1 416 777 8898 T: +972 3 684 8000 T: +82 22 1120 393 E: [email protected] E: [email protected] E: [email protected]

China Japan Spain Philip Ng Koichi Iguchi Ovidio Turrado T: +86 755 254 73308 T: +81 33 548 5384 T: +34 91 456 8240 E: [email protected] E: [email protected] E: [email protected]

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Finland The Netherlands United Arab Emirates Henry Beniard Loek Kramer Ravi Suri T: +358207603000 T: +31 306 58 2405 T: +97 14 403 0443 E: [email protected] E: [email protected] E: [email protected]

France New Zealand United Kingdom Laurent des Places Istvan Csorogi Sarah Owen-Vandersluis T: +33 (1) 55 68 68 77 T: +6448164868 T: +44 207 311 3089 E: [email protected] E: [email protected] E: [email protected]

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