New car registrations increased 2.4% year-on-year in May to 198,706 units, The Society of Motor Manufacturers and Traders (SMMT).
This growth was negatively impacted by diesel car sales, which shrank 2.5% year-on-year to 97,084. Petrol sales over the same period increased by 6.1% to 96,597 units.
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However it was alternatively-fuelled vehicles (AFV) which saw the fasted year-on-year growth in May – up 45.9% to 5,025 units.
While this number is still a long way off the number recorded by traditional engines, it meant its market share increased from 1.8% in May 2014 to 2.5% in May 2015.
Year-to-date, AFV’s sales were up 60.7% at the end of May, compared to the same period 2014.
Mikes Hawes, chief executive of the SMMT said: "The remarkable growth in demand for plug in vehicles is expected to continue as the range of ultra-low emission vehicles on sale increases. Meanwhile, we anticipate a natural levelling out of the overall new car market throughout the remainder of 2015."
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By GlobalDataThe majority of the growth in May came from the fleet market, which grew 4.5% year-on-year to break the 100,000 mark, although private sales also grew, up 1.2% year-on-year.
Brands
A number of brands saw sales drop year-on-year in May, including Vauxhall and Volkswagen, which saw sales drop by 5.75% and 9.58% respectively. Toyota, Honda, Fiat and Peugeot were some of the other brands which saw sales slide in the month.
Ford, the UK’s largest manufacturer, increased its sales by 3.47% year-on-year in May, to 24,273. Nissan and Mercedes were the only two manufacturers which sold over 10,000 units in the month to experience double digit year-on-year growth. In the period Nissan sales increased by 13.89% to 11,561 units, while Mercedes sales increased 12.08% to 11,355 units.
Chris Sutton, managing director of Black Horse, said: "The summer months usually show a slowdown of car sales ahead of the September plate change however as this month’s data shows dealers clearly remain bullish that they will sell new cars off their forecourts. Consumers are also taking steps to buy a new car with alternative fuel models performing particularly well.
"Both motor dealers and manufacturers continue to work very hard to offer very competitively priced cars and finance offers making the option of owning a new car more affordable and appealing particularly as this low interest rate environment continues."
Sue Robinson, director of the National Franchised Dealers Association, said the figures were "extremely positive." She said: "Strong manufacturer deals and low cost finance incentives offered by dealers and manufacturers during 2015 have in no doubt influenced many consumers to buy. Increase In the fleet markets show’s that business confidence has returned, allowing them to invest in replacement vehicles.
"Competitive pricing and strong incentives remain important if the sales trend is to continue throughout the second half of the year."
