[1/3] Sensors and other guidance technology for driving are seen in a passenger vehicle used to travel autonomously using Oxbotica software during a test on public roads in Oxford, Britain, on June 27, 2019 .Image taken on June 27, 2019. REUTERS/Toby Melville
LONDON, June 8 (Reuters) – Britain could lose investment in autonomous vehicles (AVs) and see startups shift testing elsewhere if promised laws to regulate the technology are not passed before the next election general, said startups and insurance companies.
Despite the government’s vision to be a world leader in AV technology, driverless cars are currently not allowed on British roads, making it difficult for start-ups to market their vehicles and for insurers to assess their risks.
The UK government said last August that it would bring forward a bill in the current parliamentary session, expected to end this autumn, which would provide detailed regulations for 2025.
That has yet to happen, with political turmoil forcing the government to scale back ambitions for this session.
With a national election due in January 2025, the industry wants the government to introduce the legislation in the next session or risk lengthy delays.
“There is a window of opportunity for Britain to at least lead something,” said Claudio Gienal, head of UK and Ireland operations at global insurer AXA ( AXAF.PA ), who believes the technology could prevent accidents
“The first mover will have the advantage of attracting investment, skills and expertise.”
“But if you’re second or third, why should people come here?” added Gienal, who wrote to Britain’s finance minister in April to urge the government to pass a bill in the next parliamentary session.
The UK government’s vision is based on forecasts that by 2035 around 40% of new cars could have self-driving capabilities and leadership in AV technology could create up to 38,000 new skilled jobs in a market worth of 42 billion pounds ($53 billion) in Britain. that date
Transport Minister Mark Harper said in December there would no longer be a transport bill this session and did not mention a separate bill in an outline of the ministry’s legislative agenda.
Iain Stewart, who chairs Parliament’s transport committee, said there was not enough time for an AV bill this session, but it could happen in the next session.
Last month, junior minister Jesse Norman said he shared the concerns of AV startups.
“We are making the case as vigorously as we can … for this to be a priority for the government,” he told lawmakers.
Failure to enact regulations could give ground to other countries such as France, Germany and the United Arab Emirates, which are implementing regulations, or several US states, including California.
Startups are actively lobbying the government to pass the bill, while insurers need to know who is responsible in order to insure driverless cars.
They fear that a self-driving bill will be swamped by other priorities that win votes in the run-up to the election.
“We need to see legislation move forward in this next (parliamentary) session to make it happen,” said Kaity Fischer, vice president of commercial at London-based Wayve. “Or we will be forced to move to other markets for deployment.”
Wayve has raised about $260 million so far from investors including Microsoft ( MSFT.O ).
“CHANGE OUR PLANS”
The UK government has so far been seen as a big supporter of AV startups, with its Center for Connected and Autonomous Vehicles securing more than £400 million in private and government funding for more than 90 projects.
Last year, two independent government bodies made well-received recommendations for an AV law.
Ashley Feldman, director of programs and policy for transport and smart cities at industry group TechUK, said a delay would force startups to try and start generating revenue elsewhere.
“It’s important that these startups get to commercialization quickly,” he said.
Bristol-based Fusion Processing recently launched a 14-mile autonomous bus route linking Edinburgh and nearby Fife in partnership with bus operator Stagecoach, bus manufacturer Alexander Dennis and funded by part by the government, with a safety driver behind the wheel.
Fusion wants to start commercial driverless bus services in the UK by 2025.
“If that doesn’t happen, we would have to change our plans,” said CEO Jim Hutchinson, including tests in other countries.
Oxford-based AV software firm Oxbotica has raised about $225 million from investors and is working on AV projects with clients including BP ( BP.L ) and British online supermarket and technology group Ocado ( OCDO.L ) .
Founder Paul Newman said he was optimistic the government would pass the promised bill, but added it was “extremely important that we get it done very, very soon”.
Reporting by Nick Carey, editing by Ben Klayman and Sharon Singleton
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