In the fleet sector, a total of 74,786 vehicles were registed last month, up by 16% compared to the 64,484 recorded in May 2009. This gave the sector an improved marketshare of 48.8% compared to 47.8% for the same period in 2009.

The sub 25 business market saw registrations of 6,334 last month – up by 0.7% compared to the 6,293 units in May 2009. Its market share dipped slightly, falling from 4.7% for May 2009 to 4.1% for last month.

Retail registrations were also up for May, as the final few scrappage registrations continued to feed the market. Overall, the new car market was up by 13.5% last month compared to May 2009.

Year-to-date figures show strong gains compared to 2009, when the market was still being severely impacted by the recession. A total of 419,682 vehicles have been registered to fleets so far in 2010 – up by 14.9% over 2009. However, its market share has declined from 48.8% to 45.39%.

For the business market, year-to-date figures of 43,059 units show a more modest gain of 3.8% over 2009's figure of 41,487. Its market share has also fallen, down from 5.5% to 4.7%.

Commenting on the latest results, Paul Everitt, SMMT chief executive, said: 'May was another good month for the UK new car market, although we expect the coming months to be extremely challenging. It is essential that the upcoming emergency budget promotes consumer and business confidence to maintain economic recovery.'