Driverless cars to create 320,000 UK jobs and save 2,500 lives

Driverless cars will accelerate the renaissance Britain’s automotive industry is currently enjoying, creating hundreds of thousands of new jobs, adding tens of billions to the economy and saving thousands of lives.

The claims come in a new report examining the impact technical advances will have on motoring, produced by KPMG for trade body the Society of Motor Manufacturers and Traders.

If Britain continues on its current course of embracing autonomous cars and the new technology they incorporate, the report claims that by 2030 driverless cars will:

*create 320,000 new jobs in the UK, of which 25,000 will be in automotive manufacturing

*add £51bn a year to the country’s economy

*save 2,500 lives by preventing 25,000 serious accidents between now and 2030.

In addition, it expects a quarter of all cars rolling out of dealers’ forecourts to be fully autonomous by 2030 and every single new vehicle coming onto the roads to incorporate “connected” systems linking them to the online world.

These connected systems could range from communications devices to driver aids such as collision avoidance which will help drivers keep out of accidents.

The UK already has a headstart over European rivals in introducing driverless cars. The country never ratified an EU convention that required vehicles to have a driver, meaning that Britain has been able to take an early lead in developing the technology because no new legislation has been needed to begin trials.

Already four pilot schemes - in London, Bristol, Milton Keynes and Coventry - backed by £19m of Government money are under way to investigate how the technology can be incorporated on to Britain’s roads.

Ministers recognise the importance of grabbing pole position in the race to develop driverless cars. In the Budget Chancellor George Osborne announced a further £100m of funding to investigate the technology, a sum which will be matched by industry.

_{Transport minister Robert Goodwill behind the wheel at the SMMT's Connected conference}

Robert Goodwill, Transport Minister, said: “New technology is fundamental to government’s vision for our roads. Connected and autonomous cars will help us move to a smart, safe, efficient and low carbon future.”

The report predicts that as well as boosting the economy through job creation, driverless cars will create value by reducing congestion as connected cars “talk” to each other to help prevent traffic jams.

It is also expected that with people transported in autonomous vehicles being freed from having to control them, time spent in transit can be used for other tasks, boosting productivity.

At the moment most cars are used only for a fraction of the time, meaning they sit idle for most of their lives, taking up valuable space in towns and cities. Driverless cars would be able to navigate themselves away from urban centres when not in use, liberating space that would otherwise be taken up by parking.

Mike Hawes, SMMT chief executive, called on industry and government to ensure that the UK capitalises on its advantages to take the lead in the field.

“Connected and autonomous cars will transform our roads and the way society functions for generations to come,” he said. “The report shows the UK automotive industry is leading the way in developing the cars of the future that it will act as a catalyst for wider economic benefits.

“The UK must grasp the opportunities ahead so it is continually at the forefront of pushing through these next breakthrough technologies.”