UK Car Market Roars Back: May Sales Surge Post-Pandemic

The UK's new car market delivered its most robust May performance since before the pandemic, with registrations climbing 7.1% to 160,662 units. This marks the best May figure since 2019, although it still trails pre-pandemic levels by 12.6%.

Private buyer demand saw a substantial increase of 17.2%, boosted by competitive offers and a wider selection of models. Fleet registrations grew modestly by 1.8%, constituting over half of all sales. Simultaneously, sales of petrol and diesel cars declined as electrified vehicles gained prominence.

Hypbrid electric vehicles (HEVs) saw a 1.8% rise, while plug-in hybrids (PHEVs) surged 23.9%. Battery electric vehicles (BEVs) recorded a significant 34.2% uplift in May, achieving a market share of 27.3%, the highest to date in 2026. This growth is attributed to manufacturer discounts and government incentives like the Electric Car Grant.

Despite this positive trend, the SMMT highlighted that the shift to zero-emission mobility is not on track with mandated trajectories. Year-to-date BEV market share stands at 23.9%, falling short of the 33% required for 2026. The SMMT urged an urgent review of the transition strategy, citing the widening gap between targets and consumer demand.

The UK government's seventh Carbon Budget envisions EVs making up 95% of new car and van sales by 2030. The SMMT cautioned that achieving such ambitious targets would necessitate equally strong fiscal and investment support, given the unlikelihood of a tripling in EV demand within three years under current projections.