Industry body the Society of Motor Manufacturers and Traders (SMMT) said the UKโs new car market returned back to growth in May with a rise of 1.6% of new registrations.
The SMMT said that last month there was 15,070 new cars registered up from May last year which saw new registrations of 147,678.
Electric cars rose by 25.8% and took a market share of 21.8% up from 17.6% the previous year.
SMMT chief executive Mike Hawes said, โA 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.
โThis cannot be sustained indefinitely as it undermines the ability of companies to invest in new product development โ investments which are integral to the decarbonisation of all road transport.
โNext weekโs 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.โ
Ian Plummer, commercial director of online vehicle marketplace Auto Trader, said: โDespite recent geopolitical volatility, the fundamentals of the car market remain sound, and the sharp rise in electric vehicle sales against last year demonstrates real momentum.
โElectric demand is being driven by new affordable models like the Renault 5 and the Hyundai Inster, along with fast growing Chinese brands like BYD and Omoda-Jaecoo, which will be key to mass market adoption.
โAround one in four of all new cars viewed on our website is electric and we know that when the price is right, drivers are keen to make the switch.โ
Leave a Comment