What changed in the automotive sector with Brexit?

The referendum results of Britain leaving the European Union (EU) came as a surprise to everyone. It was unprecedented since no country has ever left the EU. There are questions on what will change given this development. And how will countries like Singapore and the rest of the world be affected?

What changed?
We know that there are areas that do not change and will not change with Brexit. In the automotive sector, with the UK being one of the primary worldwide markets for all European vehicle brands, the general belief is that sense will ultimately prevail and there will be no drastic changes.

The ongoing requirement for skills in the automotive sector will not change. In fact, what has changed in this sector has actually nothing to do with Brexit.

For the past few years, there has been a technological change happening worldwide in this sector that is almost unprecedented. The pace of technology advancements in the automotive industry have been picking up rapidly.

We now have electric and hybrid cars on the road with sales figures continuing to increase worldwide. The people working in this industry now need to know about electric and hybrid power, fuel cells and autonomous vehicles. This is something totally unheard of ten years ago.

With new technology becoming increasingly complex, mechanics are not just required to know the ins and outs of a car from an automotive point of view but also need to have an understanding of technology and electrical equipment within the cars.

So there is a burgeoning need for businesses to keep the existing workforce up to speed as well as deal with the huge issue of bringing in new talent that has the right skills and training to handle the new technology.

Several countries in Asia have already piloted programmes to put electric vehicles on the road and are working to develop the infrastructure to make electric vehicles accessible for the mass market. Some have begun by putting in place tax and government incentives to encourage more energy efficient vehicles (EEV).

In Singapore, the government is working on an electric car-sharing programme as well as starting an all-electric taxi fleet in the country as one of its pioneering initiatives. Very recently, the country has also begun a trial with self-driving taxis.

A worldwide phenomenon
For the Institute of the Motor Industry (IMI), as an international organisation we see this phenomenon happening worldwide. In fact, the countries in Asia are demonstrating a more rapid adoption or keenness to rapidly adopt new technology in the car industry.

While there are certain fundamental and cultural differences in every country, the challenges that the car industry go through in the area of training and people development are quite similar.

Our need to qualify and educate people in this industry will not change even post Brexit. In the case of IMI, for example, although we are established in the UK, our qualifications and accreditations are based on global standards and not EU standards and they are relevant and will continue to be applied by our training partners located in 22 countries all over the world.

Our work now is working with our training partners worldwide to ensure the people in the automotive sector are adequately equipped with the new skills required. Unlike working on conventional cars, it is actually extremely dangerous for people to work on high-voltage systems in electric cars if they have not received quality training. It is equally dangerous for people driving electric cars if their cars are not serviced by trained professionals.

Some technology companies are now even developing driverless cars. In the next decade or so, perhaps what we will see is a new breed of car mechanics who have more skills and knowledge in technology than in cars per se. That may be the real change we will see in the automotive sector.