UK new car sales hit best May since 2019, industry data shows
Strong Growth in UK New Car Market Driven by Electric Vehicles
Overview of May Car Sales Performance
June 4 (Reuters) - Britain's new car sales rose 7.1% in May, the strongest for the month since 2019, driven by resilient retail demand, especially for electric vehicles, according to industry data released on Thursday.
Electric Vehicles Gain Momentum
EVs have been gaining ground in Europe as rising fuel costs, largely driven by global oil shocks from the Iran war, steer customers toward alternatives.
Overall new car registrations in Britain rose to 160,662 vehicles last month, the Society of Motor Manufacturers and Traders (SMMT) said. Battery electric vehicles (BEV), the biggest under EVs, climbed 34.2%, the most among all car categories.
Industry Insights and Consumer Trends
"We're seeing surging interest linked to macro shocks earlier in the year now materialise into real consumer demand," said Melanie Lane, CEO of EV charging provider Pod.
BEV sales share is now around 24% of total sales this year, short of the 33% target, highlighting broader challenges amid the UK's push for faster adoption of zero-emission vehicles.
"The EV transition is progressing, but consumer uptake still lags behind even today's targets, let alone the ambition set out in the latest Carbon Budget," SMMT CEO Mike Hawes said, referring to Britain's long-term targets.
Factors Influencing Sales Growth
Total registrations from individual buyers jumped 17.2% in May, SMMT said, helped by a wider model choice, competitive offers from retailers and the government's backing for schemes such as the Electric Car Grant intended to boost electric vehicle uptake.
Earlier this week, Britain set out a target to reduce emissions by around 87% in the period 2038 to 2042, down from baseline levels set in 1990.
Comparative Data and Methodology
Separate data from New Automotive showed on Wednesday new car sales rose about 6% year-on-year, driven by demand for plug-in vehicles.
SMMT and New Automotive use different data sources and calculation methods, explaining the differences in the figures.
Reporting Credits
(Reporting by Nithyashree R B and Ankita Bora in Bengaluru; Editing by Shailesh Kuber and Harikrishnan Nair)
