Car registrations in the UK grew 2.5 per cent in May, suggesting that the sales market has levelled out after strong growth in 2015.
A levelling off was forecast by industry observers at the beginning of the year, but some believe the cause could be uncertainty created by the forthcoming EU referendum.
The May figures, issued by the Society of Motor Manufacturers & Traders (SMMT), follow a two per cent rise in April, reining back from an opening quarter of 2016 that saw a surge in sales averaging more than eight per cent over the period.
In total 203,585 vehicles were registered in May, the highest total for the month since 2002. And as in April, it is the fleet sector that is currently driving the market, up 8.8 per cent and counteracting a three per cent drop in registrations to private customers. Diesel-powered cars also made a bit of a comeback, registrations up five per cent compared to a 0.6 per cent slide in petrol registrations. And 5.632 alternative-fuel powered vehicles were registered in May, 607 more than in the same month in 2015.
Year to date 1,164,870 cars have now been registered which is 4.1 per cent ahead of the same period last year. But the SMMT points to a second month of growth under three per cent as showing that the market is becoming potentially more stable following a record 2015, while adding that the fall off could be to uncertainty stoked by the EU referendum.
Despite a slowdown new registrations now compare with a peak seen in 2002. Chart...