Car manufacturer Volvo and its technology partners Telstra and Bosch aim to begin testing driverless car technology in South Australia by November, according to reports.

The trials will be co-ordinated by the Australian Road Research Board, with support from the South Australian government.

The plans are aimed at fostering a driverless car industry in Australia.

Driverless car testing is already underway in the USA, with autonomous testing projects also planned in the UK and Sweden. Last week a group of companies led by Toyota announced a $10m project to develop a testing ground for autonomous vehicles at the University of Michigan in Detroit.

While many traditional car makers are working on driverless models, one of the most publicised autonomous car development projects is being carried out by tech giant Google.

However, Toyota, Audi, Nissan and Ford all have driverless cars in the pipeline, with most set to appear within the next few years.

Australian car manufacturing has been dealt a number of blows in recent years, most notably by the announcement of closures of the Ford plant in 2016, as well as the Holden and Toyota plants in 2017.

With news of the new Volvo project, it is hoped Australia could become a driverless car development hub.

South Australian Premier Jay Weatherill said: "This trial presents a fantastic opportunity for South Australia to take a lead nationally and internationally in the development of this new technology and open up new opportunities for our economy."

The trials will involve Volvo XC90 cars around Tonsley Innovation Park, the Southern Expressway and at Adelaide Airport.