Shifting gears:
Regulatory readiness for autonomous vehicles in Asia

China continues to promote AV testing with relatively open, but quickly evolving, regulations at central and local levels. The main national regulation is the "Administrative Norms for Road Testing and Demonstrative Application of Intelligent Connected Vehicles" which took effect on 1 September 2021. This regulation provides comprehensive guidelines for the safe and orderly testing of AVs on public roads. Certain categories of AVs are permitted for use on public roads for specific purposes such as public transport and driving services, provided that they meet certain requirements such as having at least one driver or supervisor present at all times. Unmanned AVs, with local government approval, can operate under specific conditions for example with remote monitoring and within designated zones.

Several cities have enacted AV-specific regulations which complement the national regulations. On 1 April 2025, Beijing passed its most recent AV regulation – the Beijing Autonomous Vehicle Regulation, which outlines (amongst other things) procedures for AV pilot applications.

The Ministry of Industry and Information Technology (MIIT) has recently introduced stricter regulations following safety concerns. These new regulations target several key areas of autonomous driving, including banning public beta testing, restricting certain marketing terminology, prohibiting remote features without driver supervision, enforcing strict driver monitoring requirements, and heavily regulating over-the-air updates.

Overall, China's current AV regulatory framework emphasizes stringent safety measures while fostering technological advancement.

Hong Kong's flagship AV legislation took effect on 1 March 2024, in the form of the Road Traffic (Amendment) (Autonomous Vehicles) Ordinance 2023, which amended the Road Traffic Ordinance (Cap. 374) to provide for a flexible regulatory regime for AV pilot use, and the Road Traffic (Autonomous Vehicles) Regulation (Cap. 374AA) which establishes a regulatory framework for AV trial and use (AV Regulations).

Under the AV Regulations, any person can conduct passenger-carrying AV trials on designated roads if they can obtain a pilot licence and an AV certificate from the Commissioner for Transport. The licence and certificate is only issued if the applicant and AV meet qualifying conditions and criteria set out under the AV Regulations, such as the AV is "safe for operating in the proposed way". The AV Regulation does not limit the area or scale of AV trials; applicants may propose the area or scale of trials based on their objectives and proposed use of AVs. A licence is valid for a maximum of 5 years but can be renewed for up to a further 5 years.

The AV Regulations are supplemented by a Code of Practice for Trial and Pilot Use of Autonomous Vehicles (CoP) which sets out guidelines for the industry and prospective applicants. The CoP provides detailed guidance on technical, safety and operational requirements for the pilot use of AVs and AV trials. The CoP also stipulates requirements for AV design and manufacturing (such as software updates, mechanisms for switching between manual and autonomous modes and failure warnings). The Hong Kong Transport Department aims to regularly update the CoP and review relevant laws to align the CoP with the latest AV technology developments.

There is currently no AV-specific legislation in India and government action to reform existing legislation to support autonomous vehicles is in its early stages. The Motor Vehicles Act 1988 (MVA) and the Motor Vehicles (Driving) Regulations 2017 govern road transport and motor vehicle use in India. The MVA does not contemplate, and has not been updated to capture, the AV concept. For example, the MVA requires vehicles to always be under the "effective control" of the driver which is at odds with the hands-off nature of AVs. Having said this, the Motor Vehicles (Amendment) Act 2019 has reportedly enabled AV testing in India but there is limited publicly available information regarding the nature and extent to which such testing has been implemented.

Like India, Indonesia has not introduced AV-specific legislation or adapted existing laws to accommodate AV technology. For example, the country's primary traffic and road transport legislation, Law No. 22 of 2009 on Traffic and Road Transport, remains geared towards human drivers.

Despite the absence of an AV regulatory framework at this stage, recent policy moves suggest legislative updates are underway. The Indonesian Government envisages that Indonesia's future capital city, Nusantara (first mandated under the Indonesian National Medium-Term Plan 2020 – 2024), will incorporate an intelligent transportation system comprising, among other things, AV use and the development of an Autonomous Rail Transit. AV trial and testing for the purposes of the Nusantara development plan began in July 2024.

In addition, the Minister of Transportation has issued a legislative update through Regulation No. 76 of 2021 on the Intelligent Transportation Management System in the Field of Traffic and Road Transport (MOTR 76/2021). This regulation includes a specific section on autonomous vehicles and mandates the issuance of technical guidance and standards (which have not yet been issued). For now, the scope of AV use under MOTR 76/2021 is limited to public transportation purposes such as the Autonomous Rail Transit.

Japan has taken strides to establish a comprehensive legal and regulatory framework for AVs. AV-related laws have been centralised at the national level through amendments to the Road Transport Vehicle Act (RTVA) and the Road Traffic Act. Certain types of AVs can be used on public roads if they meet relevant RTVA safety standards such as appropriate driving conditions. Additionally, other types of AVs can be used for specific functions, such as remotely monitored transportation services. However, the transportation service provider must obtain a permit from the local Public Safety Commission and can only operate the permitted AVs within designated zones, such as depopulated areas. Beyond this, AVs remain subject to local vehicular laws.

Singapore is highly ranked in AV readiness thanks to advanced infrastructure and supportive government policies. Singapore AV legislation is test and trial-friendly, reflecting its status as a hotbed for public-private partnership AV projects (including autonomous public buses and truck platooning). AV use in Singapore is governed by the Road Traffic Act 1961 by way of secondary legislation incorporated under the Road Traffic (Amendment) Act 2017. An application must be made to the Land Transport Authority (LTA) for authorisation to use or trial AVs in Singapore. Upon authorisation, the LTA can impose such conditions as it thinks fit (i.e. designated driving areas, bans against passenger-carrying and minimum technical specifications). The LTA can also subject authorised AVs to milestone tests and safety assessments. At present, there is no news of any AV passing "Milestone 3"— the final milestone test which gateways unmanned AVs, or AVs with limited supervision from safety drivers, onto public roads.

South Korea has also developed a comprehensive legal framework to support the testing and commercialisation of AVs. AVs can be used on public roads under temporary permits issued by the Ministry of Land, Infrastructure and Transport (MOLIT). The regulatory framework supporting the testing, trial and deployment of AVs is a patchwork comprising (amongst others) traffic legislation, such as the Road Traffic Act, Motor Vehicle Management Act and Road Act, and most recently, AV-specific legislation in the form of the Act on the Promotion of and Support for Commercialization of Autonomous Vehicles (AVA). The AVA was introduced to promote and support the introduction, widespread commercialisation and safe operation of AVs. Under the AVA, AVs can be tested for specific uses, such as ride and delivery services, on public roads within MOLIT-designated zones.

Thailand has the potential to emerge as a key player in the AV industry in Asia but will face challenges given the lack of a comprehensive legal framework. Similar to India and Indonesia, Thai legislation has not yet been updated to accommodate AVs. AVs remain subject to general laws governing motor vehicles, such as the Vehicles Act B.E. 2522 (1979) and the Land Traffic Act B.E. 2522 (1979), alongside default tort and criminal liability principles should AV-related accidents arise. Nevertheless, signs of regulatory consideration are emerging, including the publication in 2024 of product standard guidelines for automated driving systems under the Industrial Products Standards Act B.E. 2511.

In respect of government investment, whilst the Thailand Board of Investment (BOI) has provided certain measures to support the automotive industry, including the manufacture of electric vehicles under BOI category 3.8, specific incentives for AVs are not yet in place. However, such incentives are foreseeable given that the BOI encourages the adoption of automation and robotics by industry players.