(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.

(Reporting by Yamini Kalia in Bengaluru; Editing by Mrigank Dhaniwala)