Brexit may catapult UK to front of self-driving technology race

Society of Motor Manufacturers and Traders believes European red tape could allow British carmakers to flourish

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Sharecast News | 28 Jul, 2016

Updated : 09:42

Britain could be in prime position to take advantage of new self-driving technology due to Brexit, the Society of Motor Manufacturers and Motors (SMMT) has said.

A historic referendum in June showed that a majority of Britons preferred to leave the European bloc, prompting market volatility and warnings from various businesses that the country's economy would suffer.

However, the SMMT believes the removal of the red tape associated with the EU can benefit the country's auto industry in the development of technology for automated cars.

The refusal of Britain to ratify the Vienna Convention, which obliged drivers to always be in control of their vehicle, allows the industry much more leverage in terms of its testing capability.

Chief executive of the society Mike Hawes said that the UK is already known as a place where companies feel comfortable testing technology.

“Britain is already perceived as an attractive test-bed for technologies; Brexit may make it more attractive.

Many European countries have stricter laws with regard to privacy, making it an issue for car manufacturers who will have to use internet connections to make self-driving a real and efficient possibility.

US firm Tesla has made strides towards automated driving with its Autopilot system, but Elon Musk's company ran into problems recently after a driver of one of their cars suffered a fatal crash while using the technology.

Several car companies are investing heavily in the area, and Hawes believes this competition will only get stronger.

“This is an incredibly competitive area; so many cities and countries want to be the test-bed for this next generation technology which could potentially transform the industry – the UK has to set out its stall," Hawes added. "We have regulatory framework which makes it easier to do such things.”

Despite this claim from the SMMT, the UK's car industry is still cautious in the aftermath of Brexit. The number of vehicles produced hit a 16-year high in the first 6 months of 2016, but the vast majority of these were exported, meaning a reliance on foreign markets.

“The car industry is incredibly competitive and operates on wafer-thin margins,” Mr Hawes said. “We need to maintain that competitiveness globally to ensure continued success.”

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