June 5 (Reuters) - Britain's new car sales rose from a

year earlier in May, marking the second month of recovery in

2025, amid heavy discounting by electric vehicle makers, a

report by the Society of Motor Manufacturers and Traders (SMMT)

showed on Thursday.

Chinese EVs have been rapidly expanding in the European

markets by offering deep discounts and forcing other automakers

in an intense price war that has strained their profit margins.

New car registrations rose 1.6% year-over-year to 150,070

units during the month, SMMT said, the best May performance

since 2021.

Electric vehicles accounted for more than 47% of the total

car sales in May with battery electric vehicle sales rising

25.8% year-over-year.

"A return to growth for new car registrations in May is

welcome but manufacturer discounting on new products continues

to underpin the market, notably for electric vehicles," SMMT

chief Mike Hawes said in a statement.

The auto industry, already strained by supply chain

disruptions and stiff competition, has been forced to cut prices

amid brittle consumer sentiment, uncertain global trade

policies, and the costly shift away from internal combustion

engines.

"The continued rise in EV registrations shows a growing

consumer appetite for sustainable transport, further fuelled by

the government's recent announcement to remove the need for

planning applications for at home EV charging installations,"

said Jamie Hamilton, automotive partner and head of electric

vehicles at Deloitte.

Tesla sold 2,016 cars in the UK during the month, a

36.04% decline year-over-year, according to SMMT.

Data published earlier this week by research group New

AutoMotive showed a bigger 45% drop in the automaker's UK sales.