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APJ MARKET INSIGHTS AND STRATEGY. INTEL CONFIDENTIAL. FOR INTERNAL USE ONLY.

APJ Communications: Surendra Chawla

Research Partner: Intuit Research

December 2016


Intel Autonomous Driving Study

Respondent Qualification 20 years old or above Own a car in the household and drive the car OR use taxis at least once a month

Country Coverage: Australia, Japan, Korea, Taiwan, Singapore Sample size: n=250 per market, TOTAL n=1250

Methodology Online survey using online access panels Data weighted by car ownership in each market

Data Collection November 30 – December 7, 2016

2


Summary of findingsCURRENT CAR OWNERSHIP AND COMMUTING BEHAVIOURThree in four or more households in each market owns a car, except in Singapore at 42%. The majority of car owners in KR, SG and TW say their car has one or more driver assist features.60% or more of these car owners drive their cars at least every other day. As might be expected, for car owners, driving is how they typically get around. More than 60% of non-drivers ride the train or bus with 24% using taxis as their main mode of transport. Usage of taxis is highest in Singapore, followed by Korea and Taiwan and much lower in Japan and Australia. The average commute time (one-way) is 43 mins.

AWARENESS OF DRIVERLESS CARSAwareness that driverless cars exist is high in all markets, 83% on average. Google and Tesla are best known as companies working on driverless cars. In Japan, Toyota holds first place. BMW comes in second in Korea and Taiwan. In Singapore, Uber and nuTonomy are in the top 5. Intel is currently not well known as a player in Autonomous Driving (single digit awareness). On average, consumer expect it will be six years before driverless cars are commonly available in their countries. Almost 30% in Singapore say they will be available within three years.

INTEREST IN DRIVERLESS CARS, MOTIVATORS AND CONCERNSAmong those considering to buy a car in the next couple of years, there is high interest in hybrids in Japan, Korea and Taiwan. Driverless cars are mentioned by a tenth in Taiwan. When asked about features they’d like in their dream cars, a car that knows how to avoid traffic jams and that charges on its own using solar energy are the most popular. When directly asked, 51% of consumers would consider buying a driverless car. Interest is lowest in Australia and highest in Taiwan. Interestingly, non-drivers show higher interest than drivers. Among those who would consider a driverless car, 45% would be willing to concede a high degree of autonomy to the car. And 47% would be willing to pay a premium of over 20% for a driverless car. Willingness to pay a premium is highest in Korea and lowest in Singapore. If available, more than half of consumers would be open to using driverless taxi services. Again, Taiwanese consumers are most open and Australians least interested.Being more environmentally friendly, a less stressful commuting experience, easier parking, reduced commuting time and the fact that you can summon the car are the main motivators of driverless car. Various aspects of safety – no safety standards in place yet, cars my not work in a new situation, possibility of it being hacked - are the main concerns. Concerns are higher among women and non-drivers.

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Three in four or more households in each market owns a car, except in Singapore at 42%.

Car ownership in household

72%87%

75%84%

72%

42%

28%13%

25%16%

28%

58%

0%

20%

40%

60%

80%

100%

Total Australia Japan Korea Taiwan Singapore

Car owners Non car owners

Source: Secondary researchAU: http://profile.id.com.au/australia/car-ownershipJP: http://www.japanfs.org/en/news/archives/news_id029996.htmlKR: https://www.statista.com/statistics/516280/share-of-households-that-own-a-passenger-vehicle-by-country/TW: Intel Device Tracker Study 2016; https://www.jstage.jst.go.jp/article/easts/10/0/10_567/_pdfSG: https://www.singstat.gov.sg/docs/default-source/default-document-library/publications/publications_and_papers/household_income_and_expenditure/hes1213.pdf

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http://profile.id.com.au/australia/car-ownership

http://www.japanfs.org/en/news/archives/news_id029996.html

https://www.statista.com/statistics/516280/share-of-households-that-own-a-passenger-vehicle-by-country/

https://www.singstat.gov.sg/docs/default-source/default-document-library/publications/publications_and_papers/household_income_and_expenditure/hes1213.pdf


46%54%

43%50%

35%48%

26%

31%

20%21%

27%

31%

16%

10%

22%15%

18%

13%9%

3%11% 8% 18%

5%4% 1% 5% 6% 2% 3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Do not drive

Less often than once a

week

1-2 times a week

3-4 times a week

Everyday

And 60% or more of these car owners drive their cars at least every other day.

Frequency of driving(among car owners)

Q. How often do you drive your car?Base: Car owners, Total n=995, AU n=205, JP n=203, KR n=220, TW n=211, SG n=156

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The majority of car owners in KR, SG and TW say their car has one or more driver assist features.

Driver assist features in car? (among car owners)

Q. You mentioned that you own a car. Does it have any driver assist features?Base: Car owners, Total n=995, AU n=205, JP n=203, KR n=220, TW n=211, SG n=156

Driver assist features include blind spot detection, lane departure warning, active cruise control, forward collision warning, automated parking and others.

Total

51%

Australia Japan

43% 35%

Korea

70%

Taiwan Singapore

53% 58%

7


Main modeof

transport

54%72%

52% 60% 56%

29%

4%

5%

1%4% 3%

9%

8%

2%

4%4% 15%

16%

28%14%

34%27% 22%

45%

5% 7% 9% 5% 4% 1%

0%

20%

40%

60%

80%

100%


Driving own car Somebody drives me

Ride taxi/cab Ride train or bus

As might be expected, for car owners, driving is how they typically get around. More than 60% of non-drivers ride the train or bus with 24% using taxis as their main mode of transport. The average commute time (one-way) is 43 mins.

Q. Which of the below best describes how you get to your place of work or place of study or other common places you go to most often? How long usually does your travel to work/school (one-way) take you ?Base: All respondents, Total n=1269, AU n=253, JP n=255, KR n=255, TW n=253, SG n=253

Avg. Commute time (min) 42.6 35 37.9 44.2 41.7 54

77%

3%2%

14%4%Owner- Driver 1%

8%

24%

60%

8% Non-driver


3% 1% 2% 2% 7%13%

4% 5%10% 14%

34%14%

3% 7%

14%19%

24%

9%

6% 9%

12%7%

11%

22%

17%28%

29% 20%

13%40%

67%51%

33% 38%

11%

0%

20%

40%

60%

80%

100%


Frequency of using taxi

Everyday 3-4 times a week Twice a week

Once a week Once a month Less than once a month

Taxi usage

Usage of taxis is highest in Singapore, followed by Korea and Taiwan and much lower in Japan and Australia.

Q. How often do you use a taxi/cab or ride-hailing services such as Uber, Grab etc?Base: All respondents, Total n=1269, AU n=253, JP n=255, KR n=255, TW n=253, SG n=253


Awareness that driverless cars exist is high in all markets.

TOTAL AUSTRALIA JAPAN KOREA TAIWAN

77% 80% 74% 94% 83%

Aware of driverless cars

88%

SINGAPORE

Q. Are you aware of driverless cars? Base: All respondents, Total n=1269, AU n=253, JP n=255, KR n=255, TW n=253, SG n=253

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On average, consumer expect it will be six years before driverless cars are commonly available in their countries. Almost 30% in Singapore say they will be available within three years.

Expected availability of driverless cars

2%

1%

1%

7%

10%

6%

6%

9%

8%

22%

24%

23%

17%

25%

22%

30%

10%

6%

9%

13%

16%

7%

40%

39%

49%

47%

42%

24%

14%

25%

18%

6%

11%

9%

Total

Australia

Japan

Korea

Taiwan

Singapore

1 year 2-3 years 4-5 years 6-7 years 8 years or longer I have no idea

Average (in years)

5.8

5.3

6.2

6.6

6.3

4.7

Q. How long do you think it will be before driverless cars are commonly available in your country?Base: All respondents, Total n=1269, AU n=253, JP n=255, KR n=255, TW n=253, SG n=253

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Among those currently considering to buy a car in the next couple of years, there is high interest in hybrids in Japan, Korea and Taiwan. Driverless cars are mentioned by a tenth in Taiwan.

Taiwan

Japan

Australia

Korea

Singapore

47%

68%

63%

53%

50%

49%

79%

42%28%

36%

69%

9%

9%

9%18% 3%

7%39%

11%

48% 55%50%

22%

3% 1% 1%11%

2%

Type of car consider buying

Conventional car Electric car

Hybrid car Driverless car

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All markets: 56% would consider

buying a new car in the next year or

two


When asked about features they’d like in their dream cars, a car that knows how to avoid traffic jams and that charges on its own using solar energy are the most popular.

Dream car features(among those who own a car or intend to buy one)

61%50%

68%

53%

72%65%


Q. If you could buy your dream car, which of these features would you want in it, assuming that cost is not a factor?Base: Car owners/intenders, Total n=1114, AU n=228, JP n=223, KR n=234, TW n=237, SG n=192

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Knows how to avoid traffic jams

37% 34% 37%32%

41% 43%


Can transform for different needs – eg. city car to camp trailer

62%55% 59% 63%

70%64%


Charges on its own using solar energy and "maintains" by its itself

38%28% 32%

42%51%

36%


Drives on its own and you can have a conversation with it


51% of consumers would consider buying a driverless car. Interest is lowest in Australia and highest in Taiwan. Interestingly, non-drivers show higher interest than drivers.

24% 42%

52% 83% 52%

Consideration to buy driverless cars(among those who own a car or intend to buy one)

AUSTRALIA JAPAN

KOREA TAIWAN SINGAPOREQ. If driverless cars were available in your city, would you consider buying one? Base: Car owners/intenders, Total n=1114, AU n=228, JP n=223, KR n=234, TW n=237, SG n=192

16

T2B Scores: Definitely or

probably will

consider

51%

TOTAL

Key sub-group differences:

20-50 yo – 58%51yo and above – 33%

Drivers – 49%Non-drivers – 57%

Have driver assist car feature – 59%Without driver assist car feature –37%

Aware of driverless cars – 54%Not aware of driverless cars – 34%

Low income – 32%High income – 62%


22% 29% 29% 24%10%

32%

23% 15% 13% 20%35%

17%

44%35% 48% 49% 46% 35%

12% 22%10% 7% 10% 15%

0%

20%

40%

60%

80%

100%


Partial automation

Conditional automation

High automation

Full automation

Among those who would consider a driverless car, 45% would be willing to concede a high degree of autonomy to the car.

Level of autonomy of driverless cars(among those who definitely/probably will consider buy driverless cars)

Q. What level of automation in driverless cars are you comfortable with?Base: T2B driverless cars consideration to buy, Total n=569, AU n=59, JP n=93, KR n=123, TW n=197, SG n=97

17

Partial automationAutomation will assist with only steering and acceleration/deceleration using information about the driving environment. The human driver will perform all other driving tasks.

Conditional automationAn automated driving system will handle all aspects driving, but the human driver will need to

respond if the system asks him/her to intervene.

High automationAn automated driving system will handle all aspects of driving, even if a human driver does not respond to a request to intervene

Full automationAn automated driving system will handle all aspects of driving under all road and environmental conditions with no involvement from the human driver


SINGAPORE

62%57%

TAIWAN

S. KOREA

JAPAN

AUSTRALIA

40%

45%

And 47% would be willing to pay a premium of over 20% for a driverless car. Willingness to pay a premium is highest in Korea and lowest in Singapore.

Price willing to pay for driverless cars(among those who definitely/probably will consider buy driverless cars)

37%

% of willing to pay more than 20% premium

7%14%

5% 2% 6%17%

16%

20%

11% 14%16%

17%

29%21%

27% 21%

37%29%

28% 17% 37%31%

24%32%

12%17%

15%

20%7%

5%3% 4% 8% 3%

4% 7% 5% 3% 6%


50% or above

more

41-50% more

31%-40% more

21%-30% more

11%-20% more

Up to 10% more

of conventional

carsNot pay more

than conventional

cars

Q. How much more would you pay for a driverless car?Base: T2B driverless cars consideration to buy, Total n=569, AU n=59, JP n=93, KR n=123, TW n=197, SG n=97

18

Regional average: 47% willing to pay a premium of more than

20% for driverless cars


If available, more than half of consumers would be open to using driverless taxi services. Again, Taiwanese consumers are most open and Australians least interested.

31% 58%

58% 78% 51%

Likelihood to use driverless car service

AUSTRALIA JAPAN

KOREA TAIWAN SINGAPORE

19

T2B Scores: Extremely/somewhat

likely to use

55%

TOTAL

Key sub-group differences::

Male – 59%Female – 52%

20-50 yo – 61%51yo and above – 41%

Have driver assist car feature – 63%Without driver assist car feature – 48%

Car owner/intender – 57%Non car owner/intender – 50%

Aware of driverless cars – 58%Not aware of driverless cars – 45%

Low income – 44%High income – 71%

Q. How likely are you to use such a driverless car service if it were available in your city? Base: All respondents, Total n=1269, AU n=253, JP n=255, KR n=255, TW n=253, SG n=253


Being more environmentally friendly, a less stressful commuting experience, easier parking, reduced commuting time and the fact that you can summon the car are the main motivators of driverless car.

70%

63%

59%

57%

53%

51%

51%

50%

49%

46%

45%

37%

Mainly electric or hybrids, so are cleaner for the environment

Able to spend commuting time working/relaxing/accessing entertainment

Parking congestion will be less;…

Commuting time to the office or to destination will be more predictable.

You can summon a driverless car to come to wherever you are

Possible to track my family members' whereabouts, so increases safety

Insurance costs will come down due to fewer accidents

Much safer and will reduce number of accidents than conventional cars

Traffic jams will reduce

Prestigious to own a driverless car

Running costs of driverless cars will be lower than traditional cars

Car has driver-assist technology installed so I would trust driverless cars…

Motivators for driverless cars (completely/somewhat agree)

Q. Here is a list of reasons others have given for wanting to use driverless cars. Please rate each one based on how much it applies to you personally.Base: Total n=1269, T2B consider to buy DC n=569, T2B likely to use DC service n=711

20

20-50 yo, have driver assist feature, aware of DC

Males, Driver, aware of DC

Have driver assist feature, aware of DC

Males

Males, aware of DC

Those aware of Driverless Cars

Aware of DC

20-50yo, Aware of DC

Have driver assist feature, Aware of DC

Aware of DC

HIGHER MENTIONS AMONG:


Various aspects of safety – no safety standards in place yet, cars my not work in a new situation, possibility of it being hacked - are the main concerns. Concerns are higher among women and non-drivers.

79%

76%

74%

73%

72%

69%

68%

68%

63%

58%

Safety standards for driverless cars are not yet in place

Driverless cars might not work when they encounter a situation that is not pre-

programmed

The driverless car's computer can be hacked and someone else could take control

of it

If there is an accident, it is not clear who is responsible or liable

Won't be easy to put my life in the control of a car's computer

It is very expensive to use a driverless car

With new technology such as this, there will be unexpected glitches and my safety

can not be assured

Using a driverless car means a third party would have access to my personal data

& whereabouts

Don't feel safe unless I have full control of the car

Driverless cars will remove the fun in driving

Q. Here are some concerns that other people have expressed with regard to driverless cars. Please rate each of these based on how much it applies to you personally. Base: Total n=1269,

Concerns with driverless cars(completely/somewhat agree)

21

Females, Non drivers

Females, w/o driver assist feature, Aware of DC

Females

Females, Non driver

Non driver

Non driver, Aware of DC

Aware of DC

HIGHER MENTIONS AMONG:


AgeGenderIncome*

Profile

Driverless car considerers/users are middle income earners who are also in the middle age range (31-50 yo).

28%17% 23%

62%71%

65%

10% 13% 12%

Total

T2Bconsiderto buy

DC

T2B likelyto use

DC service

Low

Middle

High

DC means driverless carsT2B consideration: Definitely/probably will consider to buy DCT2B likelihood: Extremely/somewhat likely to use DC service

*Income definition: low and high limits• TW: up to 30K NTD / 100K NTD or above• AU: up to 25K $ / 100K $ or above - annual• KR: up to 2M KRW / 6M KRW or above• JP: up to 3M Yen / 10M Yen or above –

annual• SG: up to SGD 3000/ SGD 12,000 or above

50% 54% 53%

50% 46% 47%

Total

T2Bconsiderto buy

DC

T2B likelyto use

DCservice

Male

Female

20% 22% 22%

27%33% 31%

25%27% 26%

27%19% 20%

Total

T2Bconsiderto buy

DC

T2B likelyto use

DCservice

20-30

31-40

41-50

51 orabove

23


23%14% 17%

55%61% 58%

17% 20% 19%

4% 4% 5%

Total

T2Bconsiderto buy

DC

T2B likelyto use

DC service

Occupation

Profile

Majority of driverless cars considerers/users are employed, and well-educated.

Education

DC means driverless carsT2B consideration: Definitely/probably will consider to buy DCT2B likelihood: Extremely/somewhat likely to use DC service

51%61% 58%

15%

15% 15%10%

11% 10%8%6% 7%4%3% 4%12% 5% 7%

Total

T2Bconsiderto buy

DC

T2Blikely to

useDC

service

White collar

Blue collar

Self-employed

Homemaker

Student

Notworking/retired

High school graduate or less

Attended College/University

Post-Graduate

Currently doing/completed

Post-Graduate Study at College/Univ

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