Scottish new car sales continue to rise but at half UK rate

New car sales in Scotland grew last month but at half the rate of the UK as a whole, according to figures compiled by the Society of Motor Manufacturers and Traders.

Scottish new car sales during March were up by 2.73 per cent to a “stunning” 46,050 vehicles, the trade body said.

Just over 46,000 vehicles were registered north of the border - a year-on-year increase of more than 2.7 per cent.

However, UK sales increased by 5.3 per cent to almost 519,000 - the strongest month recorded since 1999.

March is typically the biggest month, accounting for about a fifth of the year’s car registrations.

Vauxhall retained its position as market leader in Scotland, with more than 10,000 units sold, as their Corsa model remained the most popular new car.

The Ford Fiesta also had a strong month and moved into the number two spot for the year to date.

However, demand for new Volkswagen cars soared in Scotland in a sign that motorists are softening to the disgraced brand again for the first time since the emissions scandal.

Sales of new VW cars in Scotland were up by nearly 57 per cent to 4,611 in March, compared with the same month last year, with buyers lured by the spring number plate change.

The Scottish Motor Trade Association (SMTA) said the year-on-year growth was reflected in all parts of the country except Dumfries & Galloway and Strathclyde.

Sales in Grampian and the Highlands grew by 1.23 per cent to 4,347 units and 2.7 per cent to 2,169 vehicles respectively.

First quarter sales increased totalling 64,676 and were up by 2.4 per cent, compared with the same three months last year.

SMTA chief executive Sandy Burgess said: “March results have come in at a stunning 46,050 units across the country. We have come out of this critical sales period well ahead for the year-to-date situation.

“We have been aware of some dealers who were experiencing new vehicle delivery issues towards the end of the month, and this may well have had a small but noticeable negative effect.

“The rest of the UK continues to show stronger growth, but as we have mentioned previously this may not all be down to sales.”

Mr Burgess said the UK figures were likely to be skewed by some manufacturers and dealers taking “tactical decisions” on registrations.

He added: “Our dealers are telling us that demand continues to be strong for the latest models.”

PwC’s automotive leader, Phil Harrold, said: “Today’s figures reflect continuing business and consumer confidence, which will undoubtedly be boosted following the recent motor friendly budget that saw no changes to VED and fuel duty frozen for a sixth year.

“Business users continue to replenish fleets as more economical vehicles become available and consumers continue to access the very cheap finance deals that show no signs of abating.

“Of particular interest is the growth of alternatively fuelled vehicles as technology becomes more advanced but, more crucially, consumer acceptance levels rise.”