UK new car market sees growth in May 2025: SMMT

The UK's new car market experienced a modest resurgence in May, registering a 1.6% increase in sales with 150,070 units sold, the Society of Motor Manufacturers and Traders (SMMT) reported.

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

The growth, only the second instance this year, underscores the ongoing challenges of low consumer confidence and economic uncertainty.

The rise in registrations was primarily attributed to fleet and business sectors, which saw increases of 3.7% and 14.4%, respectively, accounting for 62.6% of total registrations.

Conversely, private buyer interest continued to wane for the second month in a row, with a 2.3% decline.

Traditional petrol and diesel vehicle deliveries suffered double-digit declines, dropping by 12.5% and 15.5%, respectively.

Electric vehicles experienced a significant surge in demand, capturing a combined market share of 47.3%.

Hybrid electric vehicles saw a 6.8% uptick to 20,351 units and plug-in hybrid electric vehicles jumped by an impressive 50.8% to 17,898 units.

Battery electric vehicles (BEVs) also witnessed a 25.8% increase, representing 21.8% of the market, bolstered by attractive manufacturer incentives.

Despite these gains, BEV registrations for the year-to-date have only achieved a 20.9% market share, falling short of the 28% target set by regulations.

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.”

Earlier this week, the SMMT reported that the UK’s light commercial vehicle market declined by 11.8% in May 2025, with 22,796 vans, 4x4s and pick-ups registered.

"UK new car market sees growth in May 2025: SMMT" was originally created and published by Motor Finance Online, a GlobalData owned brand.

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