Significant drop in Scottish new car registrations

The drop north of the border in a crucial month for the industry, as the number plate change brings buyers to showrooms, compared with a less dramatic but still notable fall-off in the rest of the UK where they declined by nearly 3 per cent in March.

The figures together mean the whole of the UK recorded a drop of 3.4 per cent.

The SMTA has blamed the results on political uncertainty caused by Brexit.

Its year-to-date results show that diesel registrations were down 21 per cent, while petrol cars declined by more than 6 per cent.

However demand for alternative fuel vehicles rose by 16.2 per cent.

There has been growing concern about the impact of diesel car emissions on air quality, and uncertainty about what taxes and restrictions will be introduced on the vehicles.

Sandy Burgess, SMTA chief executive, said: “There can be no doubt that this softening of the market recorded in business registrations has been fuelled in some part by continued political uncertainty.”

Mr Burgess added: “We continue to operate this roller coaster ride with the consumers’ confidence levels under attack from the backlash of uncertainty caused by Brexit.

“Despite the challenges affecting the sector our members continue to demonstrate their adaptability and resilience capitalising on the opportunities provided by other business areas including used cars, aftersales and the rise of the alternative fuel vehicles.

“There is no doubt we are experiencing a developing acceptance for alternative fuel vehicles within the market and assuming it continues to develop with the availability of more models, this segment of the market will continue to perform grow, we do however still maintain that the modern clean and efficient diesel vehicle has a role to play.”