A radio technology that allows cars to 'talk' to each other and avert accidents is being tested now.

It warns drivers of potential intersection crashes, rear-end collisions and lane drift - and could be available in everyday vehicles as early as 2012.

The technology will also enable traffic flow management and optimised route selection for drivers, reducing the costs of traffic congestion and greenhouse gas emissions.

Live safety demonstrations of the technology will be held at an Australian Dedicated Short Range Communications (DSRC) industry event.

Vehicle manufacturers and state and federal government will be among industry stakeholders who will see first-hand the DSRC technology developed by Kent Town-based company Cohda Wireless.

Cohda Wireless was founded in 2004 by a group of scientists working at UniSA's Institute for Telecommunications Research.

Director of UniSA's Institute for Telecommunications Research Alex Grant said DSRC is a radio technology that combines GPS and Wi-Fi like communications to effectively enable cars to talk to each other.

'This technology essentially equips vehicles with the ability to see around corners and to predict and avoid dangerous situations,' said Grant, according to an UniSA release.

Cohda has done DSRC field trials for vehicle manufacturers in the US and Europe and hopes to start a large-scale trial in Adelaide.