In spite of the Scottish car market demonstrating resilience, meeting future ZEV targets will depend on significant governmental action to address infrastructure, affordability, and consumer confidence in electric vehicles.
The Scottish car market saw a 3% growth in new car sales in 2024, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
This performance outpaced the UK average growth of 2.6%, with most regions across Scotland improving their sales output. Dumfries and Galloway led with a 9.4% increase, closely followed by Fife at 9.3%. The only region to report a decline was Central Scotland.
Alan Gall, chief executive of the Scottish Motor Trade Association (SMTA), highlighted the resilience of the market despite challenges such as supply issues, new car financing regulations, and the ongoing push toward Zero Emission Vehicle (ZEV) sales targets.
“There is no doubt we faced some challenges in the industry through 2024, not least of which the ongoing drive toward the Zero Emission Vehicle (ZEV) mandated sales mix of electric vehicles, supply issues and latterly the car financing regulations. Considering this, the fact the market has grown in Scotland by 3% against 2023 shows Scotland has managed to more than hold its own,” commented SMTA chief executive, Alan Gall.
However, concerns loom for 2025, particularly regarding the ZEV mandate. Gall emphasized that increasing the sales mix of Battery Electric Vehicles (BEVs) remains a significant hurdle, pointing to a disconnect between consumer demand and government-mandated ZEV targets, warning that customers may simply avoid purchasing vehicles if they feel electric options do not meet their needs.
Without substantial government support in the form of pricing incentives, charging infrastructure investments, and reduced charging costs, he said it will be difficult to make BEVs appealing to a broader audience.
The car industry also faces additional challenges, including financial headwinds, rising interest rates, and limited availability of new car stock. These factors are expected to add pressure on private and business buyers.
In terms of market performance, Volkswagen overtook Vauxhall as Scotland’s top-selling car brand in 2024, accounting for 9% of all sales. Vauxhall moved to second place with 7.35%, while Kia climbed from fifth position in 2023 to third. The Vauxhall Corsa retained its status as the best-selling car, followed by the Kia Sportage in second place and the Ford Puma in third.
