New car registrations UP by 16.7% in May 2023 – driven entirely by Fleet sales

New car registrations in the UK in May 2023 rose by 16,7 per cent in May 2023, driven by a big jump in sales to Fleet buyers.

Following the major drop in new car registrations due to Covid and war, things have been improving as supply chain pressures ease and May was no different, posting the 10th monthly increase in a row with registrations up 16.7 per cent to 145,204 units.

But the elephant in the room is that all the increase (and a bit more) is down to sales to fleets (well, to businesses too, but as that’s just 2.1 per cent of the market it’s not a huge deal), with sales to private buyers actually falling by 0.5 per cent from May last year.

Petrol power (including MHEVs) was the top choice accounting for 57.1 per cent of sales with diesel (wrongly) almost delegated to the history bin with a market share of just 7.7 per cent (including MHEVs), and AFVs growing again with BEVs up 58.7 per cent, PHEVs up 23.0 per cent and HEVs up 12.3 per cent.

The big rise in sales of BEVs and the big increase in fleet sales is not a coincidence, with big tax breaks for businesses buying EVs seemingly driving the rise, and demand for EVs amongst private buyers seemingly amongst only the better off. Which doesn’t auger well for the future of BEVs.

Mike Hawes, SMMT boss, said:

It’s good to see the new car market maintain its upward trend and the fact that growth is, increasingly, green growth is hugely encouraging. Transforming the market nationwide, however, and at an even greater pace means we must increase demand and help any reticent driver overcome any concerns about electric vehicles.