No driverless cars for ComfortDelGro for now, say analysts

Infrastructure and regulatory barriers are tough hurdles.

While the potential savings in terms of fuel and manpower costs are vast for autonomous cars, analysts say the transport firm would be better not tapping this opportunity in the near term.

According to a report by UOB Kay Hian, headwinds such as infrastructure and regulatory barriers pose challenges for commercial adoption.

“Likewise, until infrastructure such as charging stations become more widely available and cost of electric vehicles are on par with conventional counterparts, diesel-run vehicles will likely remain the best commercial choice for CD,” UOB Kay Hian noted.

However, they also added that UOB Kay Hian could well pursue the innovation, as they have a strong track record of undertaking initiatives which are both innovative and environmentally friendly.

“As an indication, the group’s UK bus business, Metroline, currently operates c.64 hybrid vehicles. Additionally, recall that CD was the first taxi company in Singapore to roll out Euro 6 vehicles, which are compliant with the latest light vehicle/commercial vehicle emission standards,” UOB Kay Hian noted.