Growth in the UK new car market is slowing, with May's registrations of 198,706 units only a 2.4% rise over the same month last year.

That compares with year-on-year growth of 5.1% in April, 6% in March, 12% in February and 6.6% in January. 

The Society of Motor Manufacturers pointed out that May's "steady" growth was still the 39th consecutive month of increases in the market.

It said more than one million cars have been registered in 2015 as a range of new products and attractive finance deals with low interest rates continue to draw buyers to showrooms. With many purchases on a three-year replacement cycle, new cars bought as the recession ended are now being replaced.

Private registrations in May totalled 91,841, a rise of 1.2%. Fleet registrations were 4.5% ahead at 100,599 units. Business registrations fell 11.5% to 6,266.

 

 

 

 

 

 

For the year to date, private registrations are only 1.3% ahead, while fleet orders are 11.8% up.

Mike Hawes (pictured), SMMT chief executive, said: "We anticipate a natural levelling out of the overall new car market throughout the remainder of 2015.”

Sue Robinson, NFDA director, said: “Strong manufacturer deals and low cost finance incentives offered by dealers and manufacturers during 2015 have in no doubt influenced many consumers to buy. 

"Increase In the fleet markets show’s that business confidence has returned, allowing them to invest in replacement vehicles.

“Competitive pricing and strong incentives remain important if the sales trend is to continue throughout the second half of the year.”

 

 

For more SMMT information click here.