Fleets continue to drive car registration growth

The UK new car market marked its 22nd consecutive month of growth as registrations rose 1.7% in May, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). With 147,678 units reaching the road, it was the best May market performance since 2021.

Fleets and businesses continued to drive market growth, up 14% and 10% respectively, narrowly offsetting a -13% decline in private retail uptake. While deliveries of both petrol and diesel cars fell, demand for electrified vehicles rose, with plug-in hybrids (PHEVs) recording the highest growth of all powertrains, up 32% to reach an 8% market share, and hybrids (HEVs) rising 10%, maintaining their status as the third most popular fuel type after petrol and battery electric at 13% of the market.

Battery electric vehicle (BEV) registrations also outperformed the market, rising 6% to claim a 18% market share, up from 17% in the same month last year. Uptake is still driven by the fleet sector, where volumes rose 11%. Private retail BEV uptake, meanwhile, fell by 2%. This performance, although encouraging, is still below the trajectory mandated on manufacturers by government in its Vehicle Emissions Trading Scheme, which demands 22% of new vehicles sold this year by each brand must be zero emission.

More information on the SMMT website.