The computer screen in an autonomous prototype Continental Chrysler 300C sedan is seen during an event featuring numerous self-driving cars on Capitol Hill in Washington, in this file photo taken March 15, 2016.
The computer screen in an autonomous prototype Continental Chrysler 300C sedan is seen during an event featuring numerous self-driving cars on Capitol Hill in Washington, in this file photo taken March 15, 2016. Reuters/Gary Cameron/Files

South Australia opened the doors for on-road trials of autonomous vehicles in the state. It has become the first Australian state to pass legislation, allowing car manufacturers to test driverless cars on public roads.

The new law will encourage businesses to set-up infrastructure related to driverless vehicle technology. This means, companies interested in conducting on-road trials of autonomous car technologies on public roads of South Australia can simply submit plans of the future trail, said Stephen Mullighan, minister of Transport and Infrastructure, SA.

Driverless car manufacturers, however, need to secure proper insurance policies and ensure sufficient protective measures in place before hitting the roads.

“By being the first state in Australia to pass these laws we are sending a very clear message to this industry that South Australia is open for business," Transport Minister Stephen Mulligan said in a statement.

This initiative marks a significant development in Australia as well as in the global context, added Mulligan. He mentioned that globally there are very few laws allowing trials of driverless vehicles along with regular traffic.

The new law has been broadly welcomed by the autonomous vehicle industry which is estimated to be worth AU$90 billion dollars within 15 years , mentioned Mulligan, as reported by ZDNet.

Gerard Waldron, managing director the Australian Road Research Board (AARB) Group believes that the inception of driverless vehicles will help to reduce the huge annual road safety bills of the nation.

In November 2015, ARRB Group successfully conducted test drive of an autonomous Tesla Model S sedan on the roads of New South Wales.

Last year, as a part of the new Australian Driverless Vehicle Initiative (ADVI) launched in November 2015, the South Australian government confirmed to review the proposal of road-focussed autonomous technology projects to the state.