Hybrid and EV sales grow 36 per cent in May

Demand for hybrid and electric cars grew by 36.1 per cent to 11,240 units in May, compared to this time last year, accounting for a record 5.8 per cent of the market. This is according to figures released by the Society of Motor Manufacturers and Traders (SMMT).

Plug-in hybrid cars were the biggest driver of growth, up 72.7 per cent, while hybrids rose 22.6 per cent and battery electrics grew 18.7 per cent. Registrations of petrol cars also increased, by 23.5 per cent, while diesels fell for the 14th consecutive month, down -23.6 per cent.

Overall, the UK new car market grew by a modest 3.4 per cent in May with 192,649 new units registered. However, the growth follows a substantial -8.5 per cent decline in the previous May when demand was impacted by VED changes and the general election.

Private demand in the month grew by 10.1 per cent, with more than 83,000 consumers driving home in a new car, while business and fleet sectors were in decline, down -9.6 per cent and -0.7 per cent respectively.

The most popular segments were supermini (up 6.0 per cent), small family (up 1.6 per cent) and dual purpose (up 19.2 per cent), while demand for specialist sports cars also rose, by 12.7 per cent. In addition, the hottest May on record saw a surge in demand for convertibles as drop tops rose 11.7 per cent year on year.

In the year to date, the overall market remains down, with new registrations having fallen -6.8 per cent, as economic and political uncertainty continues to impact demand. Business and fleet confidence, in particular, continues to lag, down -16.2% and -7.1% respectively, while demand from private buyers in the first five months is -5.7% behind 2017 levels.

Mike Hawes, SMMT Chief Executive, said, “May’s growth, albeit on the back of large declines last year, is encouraging and suggests the market is now starting to return to a more natural running rate. To ensure long-term stability, 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. Fleet renewal is the fastest way to improve air quality and reduce CO2, and this applies to hybrid and plug-in technologies as well as the latest low emission petrol and diesels which, for many drivers, remain the right choice economically and environmentally.”