UK car registrations rise 6% in May as EV demand accelerates

British new car registrations increased by about 6% in May compared with the same month a year earlier, supported by robust demand for plug-in vehicles, according to data released by New Automotive on Wednesday.

Battery electric vehicles (BEVs) continued to gain market share, accounting for 27% of all new vehicle registrations during the month.

The figures highlight the growing adoption of electric vehicles in the UK as consumers increasingly shift away from traditional petrol and diesel-powered cars.

Electric vehicles lead market growth

According to New Automotive, BEV registrations surged 31% year-on-year in May, making electric vehicles the fastest-growing segment of the market.

The increase comes as electric vehicles continue to gain traction across Britain and Europe.

Rising fuel costs, driven largely by global oil shocks and the Iran war, have encouraged consumers to consider alternatives to conventional internal combustion engine vehicles.

The UK government's Electric Car Grant has also supported the transition by helping customers move towards electric vehicle ownership.

The latest figures suggest that demand for electric vehicles is outpacing growth in other vehicle categories.

While BEVs recorded strong gains, registrations of petrol and diesel vehicles declined during the month.

Conventional vehicle sales decline

New Automotive's data showed that petrol car registrations fell by 14% year-on-year in May.

Diesel vehicle registrations also decreased, dropping 6% from the same period a year earlier.

Meanwhile, hybrid vehicle growth remained largely flat, indicating that battery electric vehicles are increasingly driving overall market expansion.

The contrasting performance between electric and conventional vehicle segments underscores a broader shift in consumer preferences as buyers weigh fuel costs and operating expenses when choosing new vehicles.

Tesla records strong growth

Among manufacturers, Tesla posted a notable increase in UK sales during May.

According to the data, Tesla's UK new car sales rose 18% year-on-year to 2,812 units during the month.

Overall, UK new car sales reached 152,331 units.

The performance reflects continued demand for electric vehicles despite a competitive market environment and broader economic uncertainties.

Industry reaction

Commenting on the latest figures, Ginny Buckley, Chief Executive Officer of Electrifying.com, said the data challenges the perception that consumers are reluctant to adopt electric vehicles.

"The latest figures should finally put to bed the old chestnut that drivers don't want electric cars," Buckley said, as cited in a Reuters report.

The May registration data points to continued momentum for electric vehicle adoption in the UK, with battery electric vehicles capturing more than a quarter of all new registrations and significantly outperforming other vehicle categories.

As fuel prices remain a consideration for consumers and government incentives continue to support adoption, electric vehicles remain a key driver of growth in the country's new car market.