New car registrations fell just 1.7 per cent year-on-year last month, the smallest decrease of the year so far.
The Society of Motor Manufacturers and Traders (SMMT) said 150,431 units were registered last month. Chief exec Paul Everitt claimed there was value across the market, even though it remains cautious.
“Consumers remain cautious, but with significantly improved fuel economy, service plans and more affordable finance, there is great value to offer across the market," he said in a statement.
The sale of fleet and diesel vehicles are on the increase however with both sales figures growing by more than 10 per cent compared to May last year.
Diesel also increased its market share to 52.9 per cent up from 46.9 per cent in May last year.
Demand for private cars fell the greatest amount with a decrease of 15.3 per cent from May 2010. Fleet vehicles are increasing and currently supporting the market with an overall increase of 11.1 per cent in May.