While the global automotive industry accelerates towards full automation, global consumer sentiment toward driver-less vehicles has seen a marked decline¹, thanks to issues of consumer trust and rising awareness of the risks associated with AV technologies. The decline is also evident in Australia, with the KPMG Autonomous Vehicle Readiness Index 2019 reporting that since 2018 Australia has fallen three places to 12th overall for consumer sentiment².

A 2016 survey of Australian road users, led by Ben Ellis, Partner, Management Consulting, KPMG, found that safety was the most important factor in willingness to pay for AVs and in the usage of driverless cars³. Other recent surveys of Australian consumers have similarly identified the importance of safety to the public^4,5.

The reporting of deaths associated with the testing or operation of AVs on public roads has likely contributed to the recent decline in consumer sentiment. In 2018, a pedestrian in Arizona was killed in an incident with a Level 3 conditionally AV⁶, and in Mountain View, California⁷ the driver of a Level 3 AV died in an accident while the car was in ‘autopilot’ mode. These two incidents received substantial coverage in the mainstream media.

Despite these incidents, AVs have the potential to drastically reduce the cost of road crashes to both human life and the economy. In 2016 alone, 1,296 people died on Australian roads⁸. Of these crashes, approximately 80 percent occurred as a consequence of mistakes such as distraction, fatigue or excessive speed⁹. In 2015 the cost of road trauma to the Australian economy was approximately $27 billion, over $2 billion more than the 2018 budget for infrastructure¹⁰. 

Infrastructure Victoria estimates that AVs could reduce crashes by up to 94 percent¹¹. If this decline were realised, it could save over 1,000 lives per year on Australian roads. In fact, partial vehicle automation features like emergency braking and electronic stability control are already contributing to a decline in road crashes in Australia.

By addressing the decline in consumer sentiment, we have the opportunity to accelerate adoption of AVs in Australia. However, as a first step, we require further knowledge of consumers’ wants and needs.

This is already underway in several states. The Queensland Government, as part of its Cooperative and Automated Vehicle Initiative, undertook a survey to understand public awareness of emerging vehicle technologies¹². Toll road operator EastLink undertakes an annual survey of attitudes of Victorian motorists to AVs. Further, KPMG is currently undertaking a survey of consumers in relation to their perception of autonomous vehicles and their willingness to pay.

Each of these surveys will enhance transport agencies’ and operators’ understanding of the attitudes of the Australian public towards AVs.

The next step is to engage, educate and promote awareness of AV issues to the Australian public. A key means to achieve this, and to address consumer sentiment, is to involve the public in AV trials. To date, the majority of trials have been closed, with few conducted on public roads. Involving the community in trials will not only improve aspects of consumer sentiment, but feedback from Australian consumers can also be incorporated into the development process.

The importance of consumer awareness for adoption of AVs has already been recognised by manufacturers and technology companies. Internationally, the Partners for Autonomous Vehicle Education (PAVE) organisation, supported by a variety of industry, non-profit and academic institutions, aims to inform the public and policymakers through awareness campaigns and public facing trials¹³. 

Australian governments can also address consumer sentiment by taking an increasingly active role in the development of AV technology, innovation and policy. As active stakeholders, state and federal governments can continue to engage with technology companies and vehicle manufacturers to incorporate Australian values into the design process, and ensure that Australian standards and ideals are reflected.

The WA RAC Intellicar trial serves as a case study for such engagements. In partnership with the WA Government, the RAC is trialling Level 4 highly autonomous ‘Intellicar’ cars on Perth’s roads. Stage Three of the trial, beginning in 2019, will allow the public to request an Intellicar robotaxi via a mobile application and to travel anywhere within a defined precinct – a significant development in AV trials moving from a fixed-routes to dynamic routing and navigation. Not only will this trial allow the public to experience AVs, it will also demonstrate the potential for future robotaxi services.

There are a number of actions governments can take to help reverse the decline in consumer sentiment to ensure Australians can realise the benefits of AVs. KPMG recommends the following actions to policymakers:

•  Continue to invest in surveys and community engagement to better understand the wants and needs of Australian consumers. Understanding consumer awareness and requirements is key to addressing negative and declining consumer sentiment. Providing additional funding or grants for trials which facilitate community engagement may also be beneficial.
• Take an increasingly active role as a stakeholder in the development of AV policy, technology and innovation to ensure Australian values are reflected. Through policy and regulation, the Government can ensure high standards of manufacturing and technology which reflect Australian values and the wants and needs of Australian consumers.
• Work to ensure Australian consumers are appropriately informed about emerging technologies to allow them to develop appropriate levels of trust and confidence. Public facing trials, such as the RAC WA Intellicar project serve as a template for such engagements in Australia and should be replicated across other major metropolitan areas.