New car registrations reach 10 year high in May

The UK car industry is enjoying its strongest period of growth for a decade, according to the Society of Motor Manufacturers and Traders (SMMT). New car registrations increased 7.7 per cent in May to 194,032 units – the most in May since 2004.

The increase in new car registrations represent 27 consecutive months of growth, breaking the 26 month record set in the late 1980s. However, the growth was less than April’s 8.2 per cent rise and the SMMT says the coming months should see some levelling off in growth rates as underlying demand stabilises.

Britain’s car industry accounts for more than £60 billion turnover, with almost 150,000 people employed directly in manufacturing and more than 700,000 across the wider automotive industry. It also accounts for 10 per cent of all UK export of goods.

Mike Hawes, SMMT chief executive, said, "Over the past 27 months, increasingly confident consumers have been drawn to some fantastic new products, attracted by innovative technologies, improved fuel economy and competitive deals helping make a new car more affordable.

“With SMMT forecasting an overall rise of around six per cent over the year, the coming months should see some levelling off in growth rates as underlying demand stabilises."

Growth in the UK car industry