‘Encouraging’ signs for motor industry as new car registrations rise in May

The UK’S new car market grew slightly in May, with new registrations up by 3.4 per cent compared with last year.

Figures from the Society of Motor Manufacturers and Traders (SMMT) show 192,649 new units registered in May.

The growth follows an 8.5 percent decline in the previous May and the market is still down almost seven per cent year-to-date but has been welcomed as an early sign that the market may be recovering.

While both petrol and alternatively fuelled vehicle registrations rose – up 23.5 per cent and 36.1 per cent respectively – new diesel models continued to struggle, with registrations down for the 14 consecutive months – by 23.6 per cent.

Mike Hawes, SMMT Chief Executive, said, “May’s growth, albeit on the back of large dec lines last year, is encouraging and suggests the market is now starting to return to a more natural running rate.

“Toensurelong-termstability, we need to avoid any further disruption to the market, and this will require sustainable policies that give consumers and businesses the confidence to invest in the new cars that best suit their needs.”

The rise in registrations has been welcomed with some caution by industry observers.

James Fairclough, CEO at AA Cars commented: “After months of consecutive decline, the new car market is now starting to show the early signs of rejuvenation, which is great to see.

“Another month of growth in June would provide even more confidence that upward trajectory on new car sales is here to stay, but the signs are encouraging.”