UK new car market records strongest May since pandemic – driven by EV growth

The UK’s new car market achieved its strongest May performance since before the pandemic, with registrations rising 7.1% year-on-year to 160,662 units.

According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), this marks the best performance for the month of May since 2019, driven primarily by a 17.2% resurgence in private buyer demand.

James Hosking, Managing Director of AA Cars, noted that the figures signal healthy consumer appetites despite broader economic challenges. “The best performing May in six years shows there is resilience in the new car market, despite the economic pressures facing many households,” Hosking said. “The demand for new cars is robust, but buyers remain highly conscious of affordability and are taking time to make the right decision.”

The electric vehicle (EV) sector emerged as the primary growth engine for the month. Battery electric vehicle (BEV) registrations surged 34.2%, securing a 27.3% market share—the highest recorded so far in 2026.

This growth has been heavily supported by significant manufacturer discounting and the Electric Car Grant, alongside a 25.6% year-to-date increase in available BEV models. Plug-in hybrids also saw a substantial 23.9% boost, while traditional petrol and diesel registrations fell by 7.1% and 2.2% respectively.

However, the industry warned that the EV transition is still missing critical benchmarks. Year-to-date, BEVs account for 23.9% of the total market, lagging far behind the UK’s legally mandated 33% target for 2026. The deficit is fuelling tension between automotive manufacturers and policymakers, especially following government proposals in the seventh Carbon Budget aiming for a 95% EV market share by 2030.

“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,” said Mike Hawes, SMMT Chief Executive. “A review of the transition is now urgent to ensure ambition matches market realities and we have a sustainable path to road transport decarbonisation.”

This focus on pragmatism is mirrored in the pre-owned market. AA Cars’ Hosking added that buyers are increasingly looking beyond a vehicle’s sticker price to calculate long-term value. “Consumers are still looking closely at the total cost of ownership, from monthly payments and insurance through to running costs,” he explained.

“Electric vehicles are becoming more accessible, with prices for the most searched EVs and hybrids on AA Cars down 7.1% year-on-year in Q1… Buyers are weighing up all fuel types and choosing the option that offers the best balance of affordability.”