The UK’s new car market returned to growth in May, as registrations rose 1.6% to 150,070 units,
According to the Society of Motor Manufacturers and Traders (SMMT), which released the data, it was the best May performance since 2021, but still -18.3% lower than in pre-pandemic 2019.
It added that it was only the second month of growth this year, reflecting “brittle consumer confidence and economic turbulence.”
Fleets and businesses drove the growth, up 3.7% and 14.4% respectively and responsible for 62.6% of registrations, while interest from private buyers fell for the second consecutive month, down -2.3%.
There were double digit declines in deliveries of both petrol and diesel cars – down -12.5% and -15.5% – while demand for the latest electrified models increased dramatically to take a combined 47.3% market share.
Uptake of hybrid electric vehicles (HEVs) grew by 6.8% to 20,351 units, while plug-in hybrid electric vehicles (PHEVs) were up more than half (50.8%) to 17,898. Registrations of battery electric vehicles (BEVs), meanwhile, rose by 25.8%, accounting for 21.8% of the market as manufacturers continued to support sales with attractive incentives.
BEV registrations year-to-date account for 20.9% market share, seven percentage points off the 28% mandated by regulation.
Mike Hawes, SMMT chief executive, said, “A return to growth for new car registrations in May is welcome but manufacturer discounting on new products continues to underpin the market, notably for electric vehicles.
Hawes said the government should use next week’s Spending Review to introduce fiscal measures that boost the market.
