UK new car registrations were up by 1.6% year-on-year in May, with strong performances from the fleet market and plug-in vehicles.
According to the Society of Motor Manufacturers and Traders (SMMT), fleet registrations were up by 3.7%, while business registrations – classed as those to companies with fewer than 25 vehicles – rose by 14.4%.
These figures contrasted with the retail market, which was down by 2.3%. This meant private registrations took a 37.4% of the overall market, compared with 60% for fleet and 2.6% for business.
May’s market growth follows registrations having declined in six out of the previous seven months.
In terms of fuel mix, pure EV registrations were up by 25.8% year-on-year in May, taking a 21.8% share of the market – although the SMMT attributed this growth to manufacturer-provided incentives.
There was strong growth in plug-in hybrid registrations, up by 50.8% for an 11.9% market share, while conventional hybrids were up by 6.8%, taking 13.6% of the market.
Petrol car registrations were down by 12.5%, for a 47.5% market share, while diesels were down by 15.5%, accounting for 5.2% of the market.
SMMT chief executive Mike Hawes 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.
“This cannot be sustained indefinitely as it undermines the ability of companies to invest in new product development – investments which are integral to the decarbonisation of all road transport.
“Next week’s Spending Review is the opportunity for government to double down on its commitments to net zero by driving demand through fiscal measures that boost the market and shore up our competitiveness.”
Reacting to the figures, Novuna Vehicle Solutions managing director Jon Lawes said: “It’s encouraging to see EV registrations rebounding after a tough stretch for UK carmakers, with production at historic lows and tariff uncertainty still looming.
“The decision to scrap planning permission for EV chargers is a smart move – especially for businesses – and should help accelerate rollout by removing a key barrier to adoption.
“But let’s be clear – EV uptake is still being propped up by the industry. If government is serious about mass adoption, it needs to go further. Raising the VED threshold would be a smart, targeted step – right now, too many EVs are penalised by the luxury tax, and that’s slowing progress.”
Lex Autolease managing director Nick Williams said: “Rising EV registrations reflect growing consumer confidence – but it’s the used market that’s really powering up.
“With a broader range of models now available second-hand, drivers have more choice at affordable prices, making the switch to electric easier and more accessible than ever.
“With commitment and support from dealers, we can charge up the used market and help more drivers make the switch.”
