UK new car sales rise 6% in May, New Automotive industry data shows

June 3 (Reuters) - British new car registrations in May were about 6% higher than a year earlier, driven by strong demand for plug-in vehicles, with battery electric vehicles (BEV) accounting for 27% of all new registrations, data from New Automotive showed on Wednesday.

EVs have been gaining ground in Britain and Europe as rising fuel costs, largely driven by global oil shocks and the Iran war, steer customers toward alternatives. The UK government's Electric Car Grant is also helping the customers switch to EVs.

BEV registrations surged 31% year-on-year last month, making it the fastest-growing segment, according to New Automotive. In contrast, petrol and diesel car registrations fell by 14% and 6%, respectively, while hybrid car growth was largely flat.

Tesla's UK new car sales rose 18% year-on-year to 2,812 units in May, while overall new car sales reached 152,331 units, according to the data.

"The latest figures should finally put to bed the old chestnut that drivers don't want electric cars," said Ginny Buckley, CEO of Electrifying.com, adding that they're cheaper torun, and less exposed to the volatility of oil prices.

(Reporting by Nithyashree R B in Bengaluru and Mathias de Rozario; Editing by Shailesh Kuber)