New car registrations grew by 1.7% to 147,678 units in May, according to figures from the Society of Motor Manufacturers and Traders.
This means the new car market has grown for 22 months in a row, although it remains 19.6% down on May 2019 figures.
Growth was driven by 14% and 9.5% increases in fleets and businesses, offsetting a 12.9% fall in retail sales.
Across the sector, plug-in hybrid sales were up 31.5%, hybrids rose 9.6% and pure electric increased 6.2%.
Meanwhile, sales of new light commercial vehicles rose by 19.9% in the month, with 25,853 units were sold.
Mike Hawes, SMMT Chief Executive, 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. 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.”