New car market records longest period of growth since 2015, figures reveal

May was the 10th consecutive monthly rise, but registrations remain 21 per cent down on the pre-coronavirus levels of 2019.

Pure electric new cars consolidated their position as the UK’s second most popular powertrain behind petrol. A further 24,513 went on the road last month, up 58.7 per cent on May 2022 to secure a 16.9 per cent market share.

SMMT chief executive Mike Hawes said: “After the difficult, Covid-constrained supply issues of the last few years, it’s good to see the new car market maintain its upward trend and the fact that growth is increasingly green growth is hugely encouraging.

“Transforming the market nationwide, however, and at an even greater pace means we must increase demand and help any reticent driver overcome any concerns about electric vehicles. This will require every stakeholder – industry, government, chargepoint operators and energy companies – to play their part, accelerating investment to drive decarbonisation.”

Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said: “It’s great to see another month of solid sales but the continued strength of the new car market will soon depend on substantial order growth in the electric segment.

“Sales of electric vehicles (EVs) are moving in the right direction but we need to see sustained momentum. Less than 10 per cent of new car inquiries are for EVs on Auto Trader currently. To unlock mass adoption of EVs, we need to focus on the segments of society being left behind in the electric transition. Our research shows that just one fifth of women are considering an EV, opposed to a third of men. Women are seeing less information about EVs and not engaging with current selling points.

“In order to reach the Government’s 2030 goal, the focus needs to be on converting the masses and making EVs more accessible across different demographics.” Sales of new petrol and diesel cars will be banned in the UK from 2030.

John Wilmot, CEO of car leasing comparison website LeaseLoco, said: “Although a tenth consecutive month of growth in new car registrations is encouraging, we shouldn't forget that new car sales slumped in 2022, so we are comparing 2023 registrations with very low sales levels.

“Also, EV registrations are not spectacular and are struggling to increase market share – 16.9 per cent seems reasonable on the surface, but in December market share was just under 33 per cent.

“Less than a fifth of all registrations are BEVs for the fourth consecutive month, which is simply not high enough when you consider that the ban on the sale of new petrol and diesel vehicles in the UK is less than seven years away. The Government should be concerned that more people aren’t switching to electric, but there doesn’t appear to be a clear plan and consumers have few incentives to buy EVs.

“Many EVs are still too expensive, despite manufacturers cutting prices.

“Higher energy costs and substantially lower petrol and diesel prices since last summer means people aren’t as motivated to switch to reduce their running costs.”