New car registrations up in May

Date: 8/6/2012

There was a growth in the number of new cars sold in May, the latest figures have revealed.

Released by the Society of Motor Manufacturers and Traders (SMMT), data showed registrations increased by 7.9 per cent last month to total 162,288 units. This was the third monthly increase in a row.

It is thought a 14.3 per cent growth in demand from private buyers helped to boost the sector and overall, the increase was the greatest since June 2010 when there was a scrappage-induced rise.

Over the first five months of 2012, new car registrations have gone up by 2.6 per cent to 868,166 units. This is up 21,653 units on 2011's figures.

SMMT Chief Executive Paul Everitt said: "May's 7.9 per cent 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."

It seems a growing number of individuals are beginning to realise the benefits of driving low-carbon vehicles, as sales of alternatively-fuelled motors increased by 31.8 per cent in May. However, growth was also seen in sales of petrol and diesel-fuelled motors.

It was not only the new car market that recorded positive results, as the fleet market also saw improvements. After a three-month decline, the sector increased by 4.8 per cent in May. This means that during the first five months of the year, registrations have gone up by 2.6 per cent to reach 868,166 units.

Mr Everitt said the figures suggest confidence is returning among both private buyers and fleet operators, despite the difficult economic climate.

He added that vehicle manufacturers and their dealer networks are continuing to work hard so they can deliver value for money to motorists.

Commenting on the news, IHS Global Insight welcomed the improvements and described them as "encouragingly decent."

"This lifts hopes that consumers may be becoming a little more prepared to spend, which would be good news for recovery hopes," the organisation added.

Posted by Mary Treen