UK voters will make a life-changing choice on June 23rd, 2016, as they head to the polls to decide Britain’s membership in the European Union. As a part of the 2015 General Elections, Prime Minister David Cameron promised the European Referendum, and since 1975, this is the first time that the citizens of the UK will have a say in Britain in the EU. Brexit stands for the short form of Britain and exit, which means the UK is leaving the EU.

Although much deliberations are taking place around Brexit, exploring the advantages and disadvantages of EU membership, the Society of Motor Manufacturers and Traders (SMMT) revealed that more than 75% of its members voted against Brexit, with neither of the large auto manufacturing members, such as BMW, Audi, Hyundai, Mercedes, Nissan, Kia, Ford, Honda and Peugeot-Citroen being in the remaining 25%. Most of the automobile companies believe that losing a market of 500 million people would spell disaster for the UK Motor Industry. It can threaten exports and jobs and affect consumers on a large scale. Over 40% of the cars manufactured in the UK are exported to the EU, marking exports worth £11.8 billion, while over 730,000 jobs depend on the automobile industry.

The effects of Brexit will largely hit motorists in the UK. Petrol prices will increase by 19p, and the British Treasury has already predicted that the damage of Brexit would cost every British Household a surplus of £4,300, which will be a severe blow to the country’s economy. Given below are insights into what Brexit means for the UK and how the Brexit decision can affect UK drivers in ten primary areas.

 Travelling abroad

With Brexit, new taxes might be imposed on travel businesses, which could lead to a surge in travelling expenses. However, this might not pose a threat to UK motorists as they spend an average of £20 billion travelling to EU countries. If the UK leaves the EU, the drivers might need to get their passports stamped at the borders. Similarly, driving abroad might not be perceived as an issue as licensing will now fall under the bilateral agreements that are already in place for countries around the EU. However, should Britain exit the EU, UK nationals who have been living abroad will now be able to hold their current driving license for a year, after which they will have to apply for a new license like the rest of the non-EU countries.

 The UK Automobile Export Industry

The Automobile Export Industry in the UK has been rising higher and higher over the past decade and can now pose one of the biggest threats if Brexit takes place. The UK currently has the largest single automobile market in the world, with an investment of £8 billion since 2013, with more than 80% of the vehicles manufactured in the UK exported to 100 countries, of which a majority lies in the EU. Moreover, 63% of the materials and parts are supplied from the EU. Disruption in this line of trade might take place following Brexit, which could strike a huge blow to the automobile industry. Additionally, new cars in the UK would subsequently cost more.

 Fuel Prices

Much is being said about the fate of fuel prices in Brexit. According to both RAC and AA, petrol and diesel prices might not hike more than 2p and 4p per litre, respectively. A pound is currently worth $1.44, and one tonne of petrol imported to the UK costs $500. Considering that the current petrol price is 26.2p per litre and Brexit weakens the worth of the pound by 10 cents, the cost of petrol would come to 28.2p per litre. Alternatively, if the worth of the pound increases by 10 cents, UK drivers will pay 2p less than the current price.

In February 2016, the pound’s value fell to its lowest value against the dollar. This happened for the first time in almost seven years, and since fuel is valued in dollars, fuel prices hiked in the UK. Some experts say that Brexit could usher in a permanent devaluation of the pound, maybe as low as 20%.

 The Automobile Job Market

It is well known that there is a documented skill gap in the automobile workforce of the UK, and despite huge funds being poured into upskilling and training the workforce, they still need supplement specialists and experts to keep the country at the epitome of automobile manufacturing. As long as Brexit does not take place, there will be free movement of these experts across all countries of the EU to train and share best practices, which will continue to provide workers, engineers and specialists in the UK to participate in the EU Automobile Collaborative projects.

Those who are backing Brexit claim that EU migrants are taking away the jobs meant for the people of the UK. However, the opposition is debating this point, who feels that leaving the EU will strangle business investments in the UK, which will reduce job opportunities for the British.

The Brexit countdown has already begun, and it is only a matter of days before the world witnesses the verdict of the UK citizens on whether the UK decides to stay in the EU or quit. Let’s wait and watch what Brexit means for the UK’s future.