THE UK's new car market returned to growth in May, as registrations rose 1.6 per cent to 150,070 units, according to the latest data published today by the Society of Motor Manufacturers and Traders.

It was the best May performance since 2021, but still 18.3 per cent lower than in pre-pandemic 2019 and only the second month of growth this year, reflecting brittle consumer confidence and economic turbulence.

The Ford Puma remained Britain's top seller in May with 3,695 registered in the month followed by the Kia Sportage on 3,256 and the Nissan Qashqai on 3,088.

Fleets and businesses drove the growth, up 3.7 per cent and 14.4 per cent respectively and responsible for 62.6 per cent of registrations, while interest from private buyers fell for the second consecutive month, down 2.3 per cent.

There were double digit declines in deliveries of both petrol and diesel cars - down 12.5 per cent and 15.5 per cent - while demand for the latest electrified models increased dramatically to take a combined 47.3 per cent market share.

Uptake of hybrid electric vehicles grew by 6.8 per cent to 20,351 units, while plug-in hybrid electric vehicles were up more than half (50.8 per cent) to 17,898.

Registrations of battery electric vehicles, meanwhile, rose by 25.8 per cent, accounting for 21.8 per cent of the market as manufacturers continued to support sales with attractive incentives.

Despite this, BEV registrations year-to-date have only reached 20.9 per cent market share - still seven percentage points off the 28 per cent mandated by regulation.

Moreover, significant discounting is still ongoing despite new model introductions and increasingly affordable offerings, said the SMMT. While recent adjustments to the ZEV Mandate were welcome, the current market situation is unsustainable for a sector already facing multiple cost pressures.

The SMMT added that auto manufacturers are investing billions to deliver zero emission mobility for all, and consumers are responding but not in the volumes needed - so the industry calls on government to match this commitment with fiscal incentives.

Halving VAT on new EV purchases would put 267,000 additional new EVs - rather than fossil fuel vehicles - on the road in the next three years and drive down CO2 emissions by six million tonnes a year. Removing EVs from the VED Expensive Car Supplement, meanwhile, and equalising VAT paid on public charging to that levied at home would send a signal that now is the time to switch.

Mike Hawes, SMMT chief executivesaid: "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."

Latest data shows the breadth of vehicle powertrain choice now available, with sustained investment by manufacturers into product development, meaning car buyers can choose from more than 135 BEVs - up from 106 last year - while there are also just over 100 PHEVs and nearly 50 HEVs.

The average BEV is capable of driving almost 300 miles on a single charge and, for those keen to cut their emissions but not quite ready to go fully electric, the average PHEV electric-only range is just under 50 miles. Some PHEVs offer as much as 88 miles of zero emission motoring, while HEVs can also travel in electric mode with zero emissions at low speeds.

Meanwhile, the UK's new light commercial vehicle market fell by 11.8 per cent in May with 22,796 vans, 4x4s and pick-ups joining the road.

The contraction marks the lowest May performance since 2022 and rounds off the sixth consecutive month of decline, as weak business confidence holds back fleet investment.

Demand shrank for new vans of all sizes, with the largest models down 14.0 per cent to 14,652 units, while deliveries of medium sized vans fell by 9.2 per cent to 4,065 units and the smallest vans by 7.8 per cent to 673.

Only the new 4x4 segment saw growth, up 36.9 per cent to 716 units. The pick-up segment, meanwhile, declined by 12.7 per cent to 2,690 registrations as April's introduction of fiscal measures to treat double-cabs as cars for benefit in kind and capital allowance purposes began to bite.