New car registrations rose 16.7% in May supported by fast-rising EV take-up but the auto industry has called for increased action to drive demand.

May saw battery electric vehicles consolidate their position as the UK’s second most popular powertrain

A total of 145,204 cars were registered last month, marking the 10th consecutive month of growth, according to the new data from the Society of Motor Manufacturers and Traders (SMMT).

It’s the market’s longest uninterrupted period of growth since 2015, but registrations remain 21.0% below pre-pandemic 2019 levels.

Demand for battery electric vehicles (BEVs) was up significantly in May – soaring 58.7% to 24,513 units. BEVs now account for 16.9% of the new car market, or one in six registrations. That’s up from 12.4% a year ago and saw BEVs consolidate their position as the UK’s second most popular powertrain.

Plug-in hybrid (PHEVs) registrations were also up, rising by 23% to 9,025 units and a 6.2% market share, and hybrids (HEVs) followed with growth of 22.2% to 17,792 units and a 12.3% share.

However, petrol-powered cars remain Britain’s best sellers, accounting for 57.1% of all registrations.

Registrations to larger fleets continued to be a major source of new car demand and were up by 36.9% to 76,207 units in May. The SMMT said this reflected a “regularisation of supply” following the semi-conductor shortages over the last few years.

Smaller business fleets – companies with fewer than 25 vehicles – also helped drive the market and were up 22.5% year-on-year, reaching 3,065 units. But registrations to private buyers fell slightly by 0.5% to 65,932 cars.

The SMMT welcomed the continued upward trend in new car registrations – and said that “the fact that growth is, increasingly, green growth is hugely encouraging”.

But ahead of the planned introduction of the ZEV mandate from 2024, chief executive Mike Hawes added: “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, charge point operators and energy companies – to play their part, accelerating investment to drive decarbonisation.”

Nick Williams, transport managing director at Lloyds Banking Group, agreed.

“To continue to help drive a fair and affordable switch to electric, the Government will need to invest in the country’s charging infrastructure, as well as support the used EV market,” he stated. “Following the closure of the Government’s consultation on the Zero Emissions Vehicles mandate at the end of last month, we hope to see these important elements represented in the finalised policy. This support will help chart our electric future in the UK.”

Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte, also warned of “looming headwinds” including changes to product-specific rules of origin which will see additional tariffs placed on batteries and electric vehicles.

He stressed the need to keep EV costs down for consumers and added: “To future-proof the sector, the BEV supply chain needs to be secured and facilitating the building of vehicle battery gigafactories, for instance, is an example of how the industry can become self-sufficient.”