The owner of one of Scotland’s best-known car dealerships has warned Philip Hammond “not to tie the industry’s hands” by announcing unrealistic emission targets or penalising motorists with increased taxes.

Brian Gilda, owner of People’s Ford, was speaking as the company revealed a ten per cent slide in slide in profits in spite of achieving record turnover in 2016.

He accused the government of being “infrastructure negligent” with regards to the investment required to fully transition to electric vehicles.

Peoples Ford posted a pre-tax profit of £6.3 million as turnover climbed 6.1 per cent to £277m, with the business selling 18,864 vehicles.

Mr Gilda declared himself delighted with the performance, saying he had braced for a slowdown.

He noted that having “seen and felt the implications of what was happening in the economy” the company had actually exceeding its own expectations for the year.

“It’s the old adage, if it’s got a leg at each corner, a big long trunk and eats buns, it’s probably an elephant. And that’s where we are right now. The retail end of the economy is starting to think carefully about what’s to be done. There comes a point where people say no matter how good the deal is, I’ll wait.”

ANALYSIS: Motor trade must prepare for new future

Mr Gilda warned that consumer confidence was being damaged by uncertainty over Brexit and statements by politicians at Holyrood and Westminster on how vehicles were powered and, consequently, the outlook for the industry as a whole was being affected.

He said: “The combination of government actions north and south of the border along with no hard evidence implications of Brexit has led to a slowing of consumer confidence with the collateral damage on results.”

As Chancellor Philip Hammond prepares for next month’s Budget, Mr Gilda said: “We have to be careful that the Chancellor doesn’t tie our hands with unrealistic targets. The government is infrastructure negligent. While it would be lovely for us all to be driving about in electric cars, there is a long way to go and the infrastructure is not there to support it, there needs to be huge sums of money.

Mr Gilda said the 2030 target to end sales of new petrol and diesel cars was “aspirationally fine”, but did not know if the target would be met.

“Yes, there is going to be a big electric push because the train has left the station, but traditional vehicle will continue to be sold,” he said, adding that hybrids and electric vehicles would be part of a “whole menu of products. The vehicles we will be driving in ten years’ time will be significantly different from what we’re driving right now.”

A visit to Ford headquarters in Detroit illustrated to Mr Gilda the progress being made by the car giant on the electric front. “They are working away quietly in the background,” he said, adding that all manufactures were trying to work out the best product in the marketplace.

“What we need to do in the retail end is continue to deliver our shiny face to the customer, because no matter what comes, whether it’s petrol, diesel or condensed cow dung, we have to ensure the customer wants to talk to us and that whatever product is available we get our share of it.”

Peoples Ford group comprises three dealerships in Scotland and three in the north-west of England and is the largest independent dealership in Europe retailing only Ford cars and commercial vehicles.

In the last year sales of commercial vehicles soared by 88 per cent while new car sales, in line with the industry generally, fell by 14 per cent. Sales of pre-owned vehicles were similar to last year’s level.

Mr Gilda said: “I recognised early on in our financial year that the private sector would be the first to show signs of stress and as a consequence redoubled our efforts in the commercial vehicle market to ensure volume, share and bottom line.”

Looking forward, Mr Gilda said the overall market is liable to come back only fairly modestly. “Selling cars is easy, it’s making money that’s difficult,” he said. “We still have costs we have to take out the system, which we’re looking at right now. Those retailers no matter what industry will be looking at that right now, because they will feel this cold clammy hand on their shoulders, telling them all is not necessarily well despite what the government might say.”