Scots car-buyers will ‘rethink investing in an EV’ post-Budget, leading motor industry veteran warns
“We’ve taken a range of proactive steps to position the business for the future” – Brian Gilda, chairman
The introduction of a pay-per-mile charge for electric vehicles will see consumers “rethink investing in an EV”, one of Scotland’s leading motor industry figures has said.
Releasing annual results for his Peoples car dealership group, Brian Gilda warned the sector was facing some challenges in the medium term, particularly in the wake of this week’s UK Budget, which was described as “very disappointing” for the industry.
Gilda, who chairs the motor group that he set up in 1983, said: “It will undoubtedly impact discretionary spending, while the new electric vehicle excise duty and pay-per-mile costs may force some consumers to rethink investing in an EV.
“However, despite this, our brand is strong. We’ve taken a range of proactive steps to position the business for the future and we’re already seeing encouraging signs of growth in aftersales where demand is more stable and margins more robust.”
The latest results showed that full-year turnover had reversed 2 per cent to £277.6 million, from £283.4m the previous year, while profit before taxation and preference share dividends tumbled 75 per cent to £1.28m, from £5.15m, as the trading environment was impacted by supply constraints, interest rates and cost-of-living pressures.
Gilda described the past year as “one of the most challenging periods for the UK retail motor industry in recent memory”.
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However the company, which ended its 42-year legacy of Ford exclusivity last year and introduced Chinese brands Omoda/Jaecoo, BYD and Maxus, said the underlying business remained solid.
“Although our turnover fell only modestly, profitability declined more sharply, reflecting both external pressures and structural shifts within the sector,” noted Gilda. “Pricing and margin came under pressure and operating costs continued to rise - but despite these conditions, our group remains resilient.
“We made the decision to broaden our offering to the marketplace at the right time, reducing our dependence on any one single OEM [original equipment manufacturer]. We were determined to ensure that despite a challenging environment, we kept the machine running across our six dealerships and retained the skilled and dedicated people who are the backbone of the business.”
In her Budget, the Chancellor announced that fuel duty is to be increased and a 3p per mile charge for electric vehicles (EVs) will be introduced.
The Treasury said the 5p per litre cut in duty introduced by the Conservative government in March 2022 would only be extended until the end of August 2026. Rates will then gradually return to March 2022 levels by March 2027.
Rachel Reeves announced that from April 2028, drivers of battery electric cars will be hit by a 3p per mile tax, while drivers of plug-in hybrids will be charged 1.5p per mile.
Last year, Peoples began operations with BYD which offers a combination of pure battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), followed in early 2025 by Omoda/Jaecoo, which offers a combination of BEVs, PHEVs and petrol-powered vehicles. This summer it also introduced a range of commercial vehicles from Maxus including light commercial vehicles, pick-ups and multi-purpose vehicle (MPVs), including diesel and electric models.
The group operates six dealerships across Scotland and Liverpool.
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