UK's new car sales return to growth in May, driven by electric vehicles

By Mucahithan Avcioglu

ISTANBUL (AA) - New car market in the UK returned to growth in May with an annual increase of 1.6%, while electric vehicle (EV) sales climbed, according to data from the Society of Motor Manufacturers and Traders (SMMT) on Thursday.

The new car sales amounted to 150,070 in May, the highest May figure in four years but still 18% below the pre-COVID-19 levels.

The growth in new vehicle sales was also driven by fleet and commercial sales, while demand for personal vehicles fell for the second month in a row.

On the other hand, new sales of oil and diesel vehicles continued to fall in May, declining by 12.5% and 15.5% year-on-year, respectively.

Hybrid electric vehicle sales increased by 6.8% year-on-year in May, reaching 20,351 units. Sales of plug-in hybrid electric vehicles (PHEV) increased by 50.8% to 17,898. Battery electric vehicle sales grew by 25.8% to 32,738, accounting for 21.8% of the market.

Meanwhile, the new car sales of the US EV giant Tesla fell 36% year-on-year in May to 2,016 units. In May 2024, Tesla sold 3,152 cars in the UK.

"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," said Mike Hawes, SMMT CEO.

"This cannot be sustained indefinitely as it undermines the ability of companies to invest in new product development – investments which are integral to the decarbonization of all road transport," he added.