HONG KONG, July 22, 2020 /PRNewswire/ -- China is one of the top five performing countries in terms of securing the highest score in autonomous vehicles (AVs)-related industry partnerships, rising from thirteenth place last year, according to a KPMG global report. In addition, Beijing was identified as one of the five hyperconnected cities undertaking ground-breaking work at a municipal level.
In its third edition, the 2020 Autonomous Vehicles Readiness Index (AVRI) report evaluates the progress of 30 countries and jurisdictions across 28 indicators to assess their readiness and progress in furthering AV deployment and innovation. The indicators are organized under four pillars: policy and legislation, technology and innovation, infrastructure and consumer acceptance. This year, countries leading the overall ranking with the highest scores are Singapore (25.45), the Netherlands (25.22) and Norway (24.25). China's overall ranking remains the same as last year, in 20th position, however the country has seen progress as reflected by its increased score (from 14.41 to 16.42). China also remains in the top five in terms of market share of electric cars (EVs), a key precursor to AVs.
Philip Ng, Partner, Head of Technology, KPMG China, says: "China is leading the world, both on technology and pace of adoption and implementation, especially with its early introduction of 5G networking. Along with work to develop cooperative vehicle infrastructure system, this will build strong foundations for the introduction of AVs. The Chinese public also appear receptive to using such vehicles, particularly younger generations."
As AV technology enters a period of development maturity, most countries analysed in the report have continued to ramp up testing, development and adoption of AVs over the last year. China is seen as leading the industry on partnerships, with a main commercial interest in the use of AVs in special-purpose trucks such as inside warehouses and mines and goods deliveries, with involvement from Chinese retailers and use on city-to-city highways.
Chinese companies are also building capacity as suppliers in AV technologies including chipsets, with around 36 investments made in 2019, and LiDAR, with four or five significant local companies. Suppliers are developing sensors, AI algorithms and vehicle communications technologies.
Norbert Meyring, Partner, Head of Automotive, KPMG China, says: "China is evolving quite fast on national level policies, with a digital transport construction strategy in place, and new standards for AVs including a version of the internationally-used five levels of autonomous driving published recently. It is a very high priority for the country, and the Chinese government has made it easier to test AVs on public roads, in more cities and with fewer controls".
Beijing, the first Chinese city to authorize the testing of AVs on public roads in 2017, has taken a leading position among China's cities and continues to dedicate resources to researching and developing the use of self-driving vehicles, serving as a model for other Chinese cities. In December 2019, Beijing began to allow the testing of AVs with passengers. The city is highlighted in this year's report as one of the top five to watch that are paving a future for AVs. The other four cities featured are Detroit, Helsinki, Pittsburgh and Seoul.
The importance of AVs to Beijing is rated as "extremely important in three years" in the report, as China plans to use AVs in major events, such as the Beijing 2022 Winter Olympics and Paralympics; The Beijing 2022 Organizing Committee is hoping to make the events the most technologically driven yet, with AVs playing a huge role.
However, some challenges remain, including the need for high precision navigation maps and further development of policies and standards. A specific issue involves the heavy use of many Chinese roads by pedestrians and cyclists as well as motorised vehicles. "This presents additional challenges for autonomous driving. To tackle this, we expect that multi-lane highways will have one lane designated and equipped for AVs in the initial stage," Ng says.
About KPMG China
KPMG member firms and its affiliates operating in mainland China, Hong Kong and Macau are collectively referred to as "KPMG China". KPMG China is based in 26 offices across 24 cities with around 12,000 partners and staff in Beijing, Changsha, Chengdu, Chongqing, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Jinan, Nanjing, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Tianjin, Wuhan, Xiamen, Xi'an, Zhengzhou, Hong Kong SAR and Macau SAR. Working collaboratively across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located.
KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 147 countries and territories and have more than 219,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such. In 1992, KPMG became the first international accounting network to be granted a joint venture licence in mainland China. KPMG was also the first among the Big Four in mainland China to convert from a joint venture to a special general partnership, as of 1 August 2012. Additionally, the Hong Kong firm can trace its origins to 1945. This early commitment to this market, together with an unwavering focus on quality, has been the foundation for accumulated industry experience, and is reflected in KPMG's appointment for multidisciplinary services (including audit, tax and advisory) by some of China's most prestigious companies.
