The UK’s new car market returned to growth in May with a 1.6% increase in registrations, figures show.
Industry body the Society of Motor Manufacturers and Traders (SMMT) said 150,070 new cars were registered last month, up from 147,678 in May 2024.
This represented the best May performance since 2021 and was only the second month of 2025 with year-on-year growth.
Registrations of pure battery electric new cars rose by 25.8% to take a market share of 21.8%, up from 17.6% a year earlier.
The SMMT said this was partly a result of manufacturers offering discounts to boost sales.
It noted that under the Government’s zero emission vehicle (Zev) mandate, at least 28% of new cars sold by each manufacturer in the UK this year must be zero emission, which generally means pure electric.
Across all manufacturers, the year-to-date figure is 20.9%.
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.”
This article was written by Neil Lancefield from The Evening Standard and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.