Drivers are turning their backs on electric vehicles as well as petrol and diesel cars amid the soaring cost of new models.
Figures from the Society of Motor Manufacturers and Traders (SMMT) show that 57,453 were sold to private buyers in May, which was 12.9 per cent down on the same month last year.
And while the market for petrol and diesel cars continues to shrink ahead of a ban, sales of fully electric vehicles to private buyers also slumped 2 per cent.
It came as figures from Auto Trader showed that just one in 25 new cars costs under £20,000, down from one in six five years ago.
Auto Trader commercial director Ian Plummer said: ‘The new car market remains sluggish and retail demand has flagged as a dearth of affordable new models means less choice, despite fleet buyers underpinning the market.
Sales slump: Figures from the SMMT showed just 57,453 new cars were sold to private buyers in May – a 12.9% drop on the same month last year
‘Rising new car prices since 2019 mean that even volume brands are suffering as the middle market is hollowed out.
‘The high prices are pushing many more buyers into the used market, but they also leave the UK market vulnerable to more affordable competition, for example, from Chinese electric vehicles.’
The price of new cars has risen as electric vehicles cost more to manufacture. And the trend for more expensive models like SUVs has pushed up prices, while inflation also contributed to the increase.
In total, 147,678 new cars were sold in May – a 1.7 per cent rise on last year – according to the SMMT figures.
The increase was driven by orders from fleet and business customers, which rose 14 per cent and 9.5 per cent respectively.
That narrowly offset the 12.9 per cent slump in private sales. A total of 9,220 diesel and 81,058 petrol cars were bought in May, a drop of 16.7 per cent and 2.1 per cent respectively, ahead of a ban in 2035.
Sales of fully electric battery cars rose 6.2 per cent to 26,031 as a 10.7 per cent rise in fleet volumes offset the fall in demand among private buyers. There was also a surge in demand for hybrid vehicles.
The SMMT chief executive Mike Hawes said: ‘As Britain prepares for next month’s General Election, the new car market continues to hold steady as large fleets sustain growth, offsetting weakened private retail demand.’
He added: ‘Consumers enjoy a plethora of new electric models and some very attractive offers, but manufacturers can’t sustain this scale of support on their own indefinitely.
‘Their success so far should be a signpost for the next government that a faster and fairer transition requires carrots, not just sticks.’
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