A PLUNGE in new car sales has been blamed on the uncertainty created by the emissions cheating scandal engulfing Volkswagen.

The disgraced German car giant has seen sales of many of its best-known brands decline sharply in October in the wake of revelations that it fitted a "defeat device" to millions of cars worldwide to dupe diesel emissions checks.

After a prolonged period of growth for the new car market following the recession, dealerships across Scotland recorded a 17 per cent dip in demand for new cars last month compared to October 2014.

The decline has been particularly stark compared to the UK as a whole, which only experienced a 1.1 per cent year-on-year fall in sales. The dip brings to an end a record-breaking 43 consecutive months of growth for the UK's new car market, which had been hailed as a bellwether for the economic recovery.

Scottish motorists also seemed particularly turned off from the VW brand, with registrations for VW models falling 27 per cent year-on-year north of the Border compared to around 10 per cent across the UK.

It comes after Scottish dealerships reported "challenging conditions" emerging in September in the wake of the emissions row.

In a statement, the Scottish Motor Trade Association said: "Whilst disappointing to note the significant reduction of 17 per cent in vehicle registrations against last year for the month of October, we feel that the year to date figures which still show a rise on 2014 confirms the ongoing enthusiasm for the purchase of new vehicles in Scotland.

"There is of course the ongoing 'issues' surrounding the VW stable of brands which will have brought a degree of uncertainty into the retail market on which Scotland depends so heavily.

"The impact on the VW group registrations in Scotland for October was a stand-alone brand decline of 16 per cent.

"We are however confident that VW Group through its excellent dealer network structure will resolve this situation given time to apply the manufacture reworks to affected vehicles.

"SMTA members continue to offer outstanding deals across the entire spectrum of vehicle purchasing."

Sales of VW models in Scotland fell from 1,411 new registrations in October 2014 to 1,025 last month, according to figures compiled by the Society of Motor Manufacturers and Traders (SMMT).

Sister brands from the VW group were also affected. Sales of brand new Seats declined 53 per cent year-on-year, from 284 in October 2014 to 134 last month, while Skoda also felt the impact of the emissions row with new registrations in Scotland down 11 per cent year-on-year from 381 in October 2014 to 339 last month.

Of the four major VW brands implicated in the scandal, only Audi achieved a year-on-year boost in sales of 10 per cent.

Total Scottish sales for the VW group - which also includes luxury brands such as Porsche, Lamborghini and Bentley - were down by 16 per cent, although Porsche experienced a slight upturn.

The SMTA said the fall in demand for new cars was disappointing but that the cumulative registrations figures for the first 10 months of 2015 still remained fractionally up on 2014.

VW has been under scrutiny since admitting in September that certain VW diesel engines had been fitted with software designed to cheat emissions tests.

VW officials subsequently confirmed that 1.2 million cars exported to the UK market prior to 2008 were equipped with the fraudulent software, with a recall set to begin early next year.

It included more than 500,000 VW cars, 80,000 commercial VW models, around 390,000 Audis, 132,000 Skodas, and 77,000 Seats.

Jim Holder, editorial director of magazines Autocar and What Car?, said the slowdown in sales was affecting the wider industry, pointing to similar fall's for Ford and Vauxhall - VW's main rivals in the UK.

Mr Holder said: "I think [the emissions crisis has] undermined confidence and it will have an effect but I think it will be short-term as long as VW don't continue making headlines every day."

Mike Hawes, chief executive of the SMMT, added: “As expected, demand has now begun to level off but the sector is in a strong position, as low interest rates, consumer confidence and exciting new products combine to attract new car buyers. The current full-year growth forecast remains on track.”