Tauranga will be the first city in New Zealand to see an autonomous vehicle in action.

Volvo and the New Zealand Traffic Institute (Trafinz) aim to demonstrate the technology in November, as part of the national Trafinz transport conference, says Transport Minister Simon Bridges.

'This is will be the first trial of its kind in New Zealand and reflects our world-leading regulation around autonomous vehicles, which encourages new technology while protecting public safety.

'It is exciting to see international recognition that New Zealand is at the forefront of enabling this technology.

'Autonomous vehicles will be a big part of the future of transport and offer potential safety, efficiency and environmental benefits.”

The Government is presently reviewing the rules relating to autonomous vehicles, unmanned aerial vehicles (UAVs) and Small Passenger Service operators, says Simon.

'Testing in New Zealand also enables an understanding of how the technology responds to the New Zealand environment, and allows our transport sector to gain skills in deploying and managing new technology.”

The New Zealand Transport Agency and Ministry of Transport are working with Volvo and Trafinz to ensure the trial will operate within the law, including appropriately managing any safety risks.

Car manufacturer Volvo will demonstrate the technology on a 10-15km stretch of public road in Tauranga as part of the national Trafinz transport conference.

Volvo Drive Me autonomous driving test car exhibited at the 2014 Salão Internacional do Automóvel São Paulo, Brazil.

Volvo NZ national manager Coby Duggan says the vehicle will self drive using sophisticated technology to navigate the road - with driver interaction only required at the halfway point of the trip.

Coby says the demonstration will take place in a ‘real world' environment with other motorists.

Anders Eugensson, a visiting expert from Volvo's Swedish headquarters, says the technology offers significant benefits for New Zealanders who commute daily or who are travelling between cities.

'Our research shows around nine in every ten crashes have a driver causation error component and the reality is, self driving cars simply do not get distracted.

"We believe this technology will greatly reduce the number of collisions on New Zealand roads while also improving efficiency."

Anders says autonomous driving (AD) will also help reduce congestion on our roads and improve productivity by reducing the daily commute stresses for workers and intercity travellers.

John Goettler, the Vice President of the New Zealand Local Authority Traffic Institute (Trafinz), says the technology has real applications for the future of transport within the New Zealand roading network.

'This demonstration is a significant first milestone towards the introduction of self-drive vehicles to enhance road safety and productivity in New Zealand."

He says New Zealand is an ideal location for the demonstration because of our world-leading regulatory environment, which encourages trialling and demonstrations of new technology such as autonomous vehicles, while protecting the safety of all road users.

"As the volume of these vehicles grows we also need to turn our attention to the creation of smart highways and motorways, to obtain the real benefits of safer, more efficient, people focused and less congested travel,” says Goettler.

The demonstration is expected to take place on November 18 once planning and approvals for NZTA regulatory requirements have been completed.