Car sales across Scotland buck the market trend

The Kia Cee'd entered the top 10 list of car sales at number three

New car sales in Scotland have bucked the downward trend in the market, according to the Society of Motor Manufacturers and Traders (SMMT).

Figures from the SMMT showed that Scottish sales went up by 7% during 2009, while sales in England were down by more than 7%.

Sharp declines in new car sales were turned around by the scrappage scheme for replacing older cars.

Last month, new car sales were 75% above the figures in December 2008.

That was double the rate of growth in England.

But there are concerns within the motor trade that the end of the scrappage scheme would make for a much tougher year in 2010, as the incentive to trade in older cars is removed.

And because car sales, that would otherwise take place during the next 12 months, have been brought forward.

Fleet and rental cars are more likely to be bought by company headquarters in England, including those sent north for use in Scotland Douglas Robertson Scottish Motor Trade Association

Douglas Robertson, chief executive of the Scottish Motor Trade Association, said the more depressed picture in England was best explained by the pattern of business purchasing.

He added: "Fleet and rental cars are more likely to be bought by company headquarters in England, including those sent north for use in Scotland."

"That part of the market has been particularly depressed, while Scottish car dealers depend more on private sales."

Less generous

With the scrappage scheme due to be closed down at the end of February, Mr Robertson said he expected a new version of it to be continued but with less generous terms, than the £2,000 grant for trade-ins of cars more than 10 years old.

The companies getting the biggest boost out of the scrappage scheme have been Kia and Hyundai.

Both of them have nearly doubled their market share, each getting above 2.5% of the market.

In December, the Kia Cee'd entered the top 10 list of car sales at number three.

Otherwise, the year's top sellers reflected the popularity of smaller cars - the Vauxhall Corsa, Ford Fiesta, Ford Focus, Vauxhall Astra, Volkswagen Golf, Renault Megane, the Mini, Peugoet 207, the Nissan Qashqai and Renault Clio.