New car registrations rose 7.9% in May to 162,288 units, the largest percentage rise for 23 months, boosted by a 14.3% growth in private demand.
“May’s 7.9% increase in new car registrations is good news for the motor industry and the UK economy, particularly the steady growth in demand from private buyers,” said Paul Everitt, Society of Motor Manufacturers and Traders (SMMT) chief executive.
“There is no doubt that vehicle manufacturers and their dealer networks are working hard to deliver value for money to motorists and the consistent climb in new car registrations during the first five months of the year suggests that confidence is returning, despite financial uncertainty in the eurozone.”
The May figure was more than 6% higher than the SMMT had originally forecast, boosted by an 86% rise in the small car sector. The market also last month witnessed a 31.8% rise in vehicles that are at least part reliant on electricity.