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Auto Finance Sponsored by Auto Finance News UK new car registrations rise 7.1% in strongest May since 2019 Published: 5th June 2026 Share The UK new car market recorded its strongest May performance in six years, with registrations increasing 7.1% year-on-year to 160,662 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). The result marks the best May since 2019, although volumes remain 12.6% below pre-pandemic levels. Growth was driven largely by a recovery in private buyer demand, which rose 17.2% as consumers responded to a growing range of available models and increasingly competitive offers from manufacturers. Fleet registrations also increased, up 1.8%, accounting for 57.1% of all new car registrations during the month. Registrations to smaller businesses fell 18.8%, although the decline represented fewer than 1,000 vehicles. Source: SMMT The market continues to shift towards electrified vehicles. Battery electric vehicle (BEV) registrations rose 34.2% year-on-year, taking a record 27.3% share of the market in May. Plug-in hybrid vehicle (PHEV) registrations increased 23.9%, capturing a 13.8% market share, while hybrid electric vehicle (HEV) registrations rose 1.8%. By contrast, registrations of petrol and diesel vehicles declined by 7.1% and 2.2% respectively. Source: SMMT The SMMT said the growth in electric vehicle demand reflected a combination of increased model availability, manufacturer incentives and support measures such as the Electric Car Grant. Consumer interest in lower-emission vehicles has also continued to strengthen despite ongoing economic uncertainty. However, the industry body warned that EV uptake remains below the levels required under the UK’s Zero Emission Vehicle (ZEV) mandate. Battery electric vehicles accounted for 23.9% of registrations in the year to date, compared with the 33% market share required in 2026. The gap between consumer demand and regulatory targets continues to place pressure on manufacturers, many of whom have relied on significant discounting and incentives to stimulate electric vehicle sales. Commenting on the figures, Mike Hawes, Chief Executive of the SMMT, said: “Britain’s car buyers are responding to a market offering more choice than ever, from both new and familiar brands, resulting in a robust May. “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.” The comments come as the UK Government’s Seventh Carbon Budget sets an ambition for electric vehicles to account for 95% of new car and van sales by 2030, significantly above the current ZEV mandate targets of 80% for cars and 70% for vans. Hawes said: “A review of the transition is now urgent to ensure ambition matches market realities and we have a sustainable path to road transport decarbonisation.” Ian Plummer, Chief Customer Officer at Autotrader, said: “May’s figures mark another strong month for the new car market, as both electric vehicles and new entrant brands continue to play a central role in that growth. “Overall, new car lead volumes on Autotrader are up by over a third on 2025, we’ve seen that strong interest flow into sales in recent months and expect that to continue. “It’s also encouraging that, for the second month in a row, electric was the most enquired upon new car fuel type on Autotrader, once again overtaking petrol as conflict in the Middle East keeps pump prices at a three-year high. There are positive signs that consumer interest is building as choice improves and more drivers gain confidence in making the switch. Maintaining this momentum will be key to ensuring a healthy and sustainable market as we reach mass adoption.” Lisa Laverick Editor - Finance Connect Sign up to our newsletter Featured Stories NewsBVRLA approves governance reforms and confirms new appointments NewsEIB partners with Ireland to support nationwide EV charging rollout NewsFrom disruption to delivery: Shoosmiths event explores the trends reshaping the auto sector Auto Finance