On the back of another challenging year for the car sector, Steve Nash, CEO of the Institute of the Motor Industry (IMI), looks ahead at what 2023 may have in store – the promises and the warnings.  

Steve Nash, CEO of the Institute of the Motor Industry (IMI)

With more vehicles featuring more advanced autonomous elements taking to the roads at a time when business and consumer purse strings are stretched almost to breaking point, 2023 could be a year of acute contrast. 

The coming 12 months will see Level 3 ready autonomous vehicles, capable of driving themselves in particular conditions whilst taking control of all safety-critical systems, enter the market for the first time. However, the ongoing skills shortage, and lack of training budgets available to many, means there are not enough technicians with the right skills to properly service and maintain these technologically advanced vehicles. The IMI will work closely with the Government regarding the emerging regulation of this technology, weaving this into the skills provision offered to professionals. 

The CBI says that the skills shortage will be with us for the long term, so employers need to plan long term. Although apprenticeship numbers have increased significantly, they still aren’t at the pre-pandemic levels they need to reach if we are to avoid long-term challenges in finding the talent our industry needs. With the skills gap widening and costs increasing rapidly, I have real concerns about the future of our industry, and the impact of employers having to make the tough choice between keeping the lights on and spending on essential training. 

Cutting costs 

As the current economic challenges continue in the new year, drivers are looking to cut costs wherever possible. It has been suggested that motorists will feel the MOT is an unnecessary expense, with RAC research saying that many will continue to use their vehicle even when the test has expired. If MOT tests are indeed pushed off the priority list, it’s not an unfair assumption that the more expensive maintenance costs, including vital checks on autonomous and driver assistance systems, will also fall down the to-do list, leaving in their wake a perfect storm for road safety disaster. 

Diversity imperative 

To see the industry grow and prosper despite ongoing challenges, employers need to get serious about Equality, Diversity and Inclusion (EDI). We have no chance of addressing our skills gap without widening our appeal to currently under-represented groups. Through the IMI Diversity Task Force, we will continue to focus on providing employers with practical solutions they can apply with both their existing and future employees. We believe this will, in turn, increase the gender, ability and ethnic diversity of the industry and address the growing skills gap. 

The move to an ‘Agency’ distribution model is also likely to become a reality this year, with Mercedes-Benz being the first OEM to taking that leap, and others set to follow suit. While there is still uncertainty about the new challenges and opportunities this will bring, there is no doubt that it will change roles at OEM and dealer level – manufacturers will take on the primary sales role while dealers refocus on the customer relationship management. This shift will create a real opportunity for investment in skills because it will be even more of a customer choice differentiator. 

The sector also needs to be ready for challenge from outside automotive. Looking at external influences, Uber has outsourced their AI programming language, Pyro, and have an ambitious car programme. Indeed, software-defined vehicles are going to be a whole new shouting match with the big players teaming up – Renault with Google for example are creating a ‘digital twin’, a virtual copy of a vehicle that offers advanced artificial technology capabilities reportedly to allow “for easier and continuous integration of new services into the vehicle and the creation of new onboard and offboard applications”. 

All of this means that 2023 should see us take a big leap into the future of road travel, but the industry needs to come together to ensure it is ready to help, not hinder, this exciting progress.