According to the Association of Automobile Manufacturers and Traders (SMMT), the UK's new car market saw sales increase by 1.6% in May, with sales up 1.6%.

This marks its best performance since May 2021, although sales figures are still 18.3% below pre-pandemic levels in 2019, the report said.

Growth is the second example of the year, highlighting the ongoing challenges of low consumer confidence and economic uncertainty.

The rise in registrations was mainly attributed to the fleet and business units, which increased by 3.7% and 14.4%, respectively, accounting for 62.6% of the total registrations.

Instead, private buyers' interest continued to decline for the second consecutive month, down 2.3%.

Delivery volumes of traditional gasoline and diesel vehicles fell by double digits, down 12.5% ​​and 15.5% respectively.

Demand for electric vehicles surged, capturing a 47.3% combined market share.

Hybrid vehicles increased by 6.8% on 20,351 units, while plug-in hybrid vehicles were at an impressive 50.8% to 17,898 units.

Battery electric vehicles (BEVs) also increased by 25.8% to 21.8% of the market, supported by attractive manufacturer incentives.

Despite these gains, BEV registrations at the beginning of the year only achieved 20.9% market share, well below the 28% target set by the regulations.

SMMT CEO Mike Hawes said: “The return on new car registrations was welcomed in May, but manufacturer discounts for new products continue to support the market, especially the foundation of electric vehicles. This cannot continue indefinitely because it undermines the company’s ability to invest in new product development in investments that are decarbonized in all road transport.

“Next week’s spending review is an opportunity for the government to increase demand by driving demand through fiscal measures that increase the market and increase our competitiveness.”

Earlier this week, SMMT reported that the UK's light commercial vehicle market fell 11.8% in May 2025 with 22,796 vans, 4x4 and pickup truck registrations.

“The UK new car market will see growth in May 2025: SMMT was originally created and released by the global Data-owned brand Motor Finance Online.

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