Automotive market update - May: New car sales record strongest May since 2019

Welcome to our monthly market insight article where we provide a snapshot of what’s happening in the UK automotive market. Each month, we highlight key industry updates and trends, including electric vehicle (EV) adoption, plus our vehicle leasing insights.

Here Managing Director Kelly Marshall gives her take on May’s performance.

What’s happening with new car sales in the UK?

New car sales were up 7.1% in May 2026 compared to May 2025, with 160,662 vehicles registered, according to the latest data from The Society of Motor Manufacturers and Traders (SMMT).

This made it the best May on record since the start of the Covid-19 pandemic when 183,724 new cars were registered.

At Gateway2Lease we also experienced a strong performance last month. Our total order volume, including cars sold through our salary sacrifice partner The Electric Car Scheme, was 12% higher than the previous best May performance, which we achieved in 2025.

What drove sales in May?

The SMMT says that a “resurgence” from private car buyers drove May’s increase, with sales to consumers up by about a fifth (17.2%) year-on-year.

That’s thanks to a wider range of attractive models at competitive prices, particularly in the electric vehicle (EV) market. Year to date, the number of new EV models consumers can choose from has grown by a quarter (25.6%), while overall model choice is up 6.4%.

Our personal contract hire (PCH) sales to consumers held steady in May, making up 38% of our total orders, as they did in April this year, with business contract hire still accounting for the majority at 62%.

Highest market share for EVs in 2026

EVs took 27.3% of the new car market in May - their highest market share so far in 2026 - while hybrids recorded 12.9% and plug-in hybrid electric vehicles (PHEVs) accounted for 13.8%.

In total, 43,931 fully electric cars were registered in May, up about a third (32%) on last year’s performance.

We actually saw a greater uplift in PHEV sales month-on-month as they took a 14% share of our total orders (compared to 8% in April 2026), while 57% of our total orders were full EV.

The Electric Car Grant, which was introduced by the Government last year and offers up to £3,750 off the price of certain new electric cars, has helped boost uptake. There are now 11 models in band 1, which qualify for the maximum grant, and 45 models in band 2, which get a £1,500 discount.

Our top 10 models for May included new 2026 models such as the Renault Symbioz SUV and Volkswagen Golf, alongside competitively priced EVs from Chinese brands.

Gateway2Lease’s top 10 most popular cars in May*

1. Hyundai Tucson
2. Volkswagen Tiguan
3. Volkswagen Golf Hatch
4. Renault Symbioz
5. Tesla Model Y
6. BYD Seal
7. Jaecoo 5 Electric
8. Renault 4 E-Tech
9. Omoda 5
10. Omoda 7

*Includes cars sold through The Electric Car Scheme

The UK’s top 10 best-selling cars in May

1. Ford Puma
2. Kia Sportage
3. Vauxhall Corsa
4. Jaecoo 7
5. Nissan Qashqai
6. Volkswagen Golf
7. Mini Cooper
8. Volkswagen Tiguan
9. Vauxhall Frontera
10. Hyundai Tucson