Thatcham asks Government to address motor sector challenges

“The UK’s automotive industry faces a number of challenges which the new Government must resolve if it is to deliver safe, secure and sustainable mobility” according to Jonathan Hewett, the Chief Executive at Thatcham Research.

Thatcham Research, the UK’s only not-for profit automotive risk intelligence company, has identified seven areas of concern within the sector, which it has asked the Government to address. These challenges, which focus heavily on automotive technology advances (particularly in respect of electric and autonomous vehicles) are split into three categories: repair, safety, and security. 

Thatcham claims that focusing on these challenges will also help address the root cause of high rates of car insurance.

Repair

• Thatcham says that there is a skills crisis that inhibits the ability to return modern high-tech vehicles to the road safely and efficiently. Thatcham has called on the Government to deal with the problems of an aging workforce and lack of investment in apprenticeships to deal with the issue.
• To fulfil Net Zero ambitions and sustainably adopt electric vehicles (EVs) they must be designed to accommodate repairs. That there is a problem in this area is borne out by Thatcham’s own research findings which show EVs are 25% more expensive to repair and it takes 14% longer to do so. Further, Thatcham argues that batteries must be manufactured in such a way that they can be repaired or recycled. A standardised means of understanding battery condition and repair options is needed to limit waste. These steps and standardisations would, Thatcham says, allow for easier repairs, prevent premature write offs, and drive down insurance costs.

Security

• Thatcham acknowledges the high security standards for vehicles in the UK but also requests the Government step in to attack the root causes of theft including disrupting criminal gangs and identifying their methodologies.
• Vehicles must be protected from malicious cyber-attacks as standard with further research funding being needed to investigate cyber vulnerabilities that could lead to vehicle theft or the use of vehicles in terror related attacks. Government should also introduce legislation that will ensure any vulnerabilities are minimised in respect of AVs.

Safety

• The Automated & Electric Vehicles Act 2018 and the Automated Vehicles Act 2024 provide the legislative framework for the introduction of automated vehicles (AVs). Thatcham highlights that insurers have several unresolved issues in respect of covering AVs. Some of these could be resolved by manufacturers allowing insurers access to crash data in order to maintain insurance rates at a manageable level. Thatcham also calls on manufacturers to give a frank disclosure to consumers of the functional and operational limits of their AVs, as well as authorisation requirements, to boost the driving public’s confidence. Thatcham is also of the view that further legislation is needed to ensure that the public can access this information.
• Thatcham is a signatory to the PACTS Manifesto for Road Safety 2024 and as such, it urges the Government to consider the PACTS recommendations and, in particular, consider graduated driving licences for younger drivers and an alignment with road safety standards in Europe.
• Thatcham also calls for the adoption of the EU General Safety Regulation 2. The regulation, which is not in force in the UK since Brexit, requires vehicles to be fitted with Advanced Driver Assistance Systems including, Intelligent Speed Assist, Autonomous Emergency Braking, Driver Drowsiness and Attention Warning, and Emergency Lane Keeping Systems. Thatcham also notes that more trained technicians are needed to repair these more advanced vehicles.

Thatcham has issued a challenge effectively to the Government, but also insurers, their repair networks, as well as manufacturers, to come together to tackle major structural issues in the UK’s automotive infrastructure.