Electric and hybrid sales drive new car registrations higher in May

(Sharecast News) - New car sales in the UK climbed in May on the back of strong growth in hybrid and electric vehicles, offsetting a decline in demand for diesel and petrol models. According to data out on Wednesday from the Society of Motor Manufacturers and Traders (SMMT), car registrations totalled 147,678 last month, up 1.7% on May 2023.

This was the 22nd straight month of annual sales increases and the best May market performance since 2021.

While that puts the year-to-date increase at 7.1%, totalling 827,500 cars sold in 2024, May's figure was still down some 19.6% on pre-pandemic levels (2019).

Fleet and business sales were responsible for May's growth, rising 14% and 9.5% year-on-year respectively, while private car registrations slumped 12.9%.

In terms of fuel types, diesel car sales were 16.7% lower at 9,220 while petrol car sales dropped 2.1% to 81,058. On the upside, battery electric vehicle (BEV) sales were up 6.2% at 26,031, hybrid electric vehicle (HEV) sales rose 9.6% to 19,503 while plug-in HEV sales jumped 31.5% to 11,866.

This meant that petrol and diesel cars combined accounted for 61.1% of the new car sales market in May, down from 64.6% the year before.

"As Britain prepares for next month's general election, the new car market continues to hold steady as large fleets sustain growth, offsetting weakened private retail demand," said SMMT chief executive Mike Hawes.

"Consumers enjoy a plethora of new electric models and some very attractive offers, but manufacturers can't sustain this scale of support on their own indefinitely. Their success so far should be a signpost for the next government that a faster and fairer transition requires carrots, not just sticks."