By Chase Gummer

FRANKFURT--German new car registrations increased in May after dipping in April, according to data Tuesday from the country's Motor Transport Authority KBA.

New car registrations rose 5.2% on the year in May to 274,804 units, topping April's level by some 700 vehicles, a monthly increase of 0.3%. In April, registrations fell 3.6% on an annual basis.

Volkswagen AG's (VOW.XE) VW brand remained the market leader with 21.1% of total registrations for May, up 2.4% from April. Daimler AG's (DAI.XE) Mercedes brand was in second place with 8.9% of total registrations, down 0.5% from April.

In the first five months of 2014, German registrations grew 3.4% on the year.

On Monday, France released registrations for May, showing a slowdown. Registrations rose only 0.1% in May, down from a 5.8% increase in April.

Write to Chase Gummer at Chase Gummer@wsj.com

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