June 5 (Reuters) - Britain's new car sales grew 16.7% in May, boosted by petrol-powered cars and large fleet vehicles, despite the growth lagging 21% below pre-pandemic levels, an industry body said on Monday.

The Society of Motor Manufacturers and Traders (SMMT) said new car sales rose to 145,204 units last month, the 10th consecutive month of growth.

"After the difficult, Covid-constrained supply issues of the last few years, it’s good to see the new car market maintain its upward trend," SMMT CEO Mike Hawes said in a statement.

"The fact that growth is, increasingly, green growth is hugely encouraging."

The sale of battery electric vehicles grew 58.7%, gaining 16.9% of the market share in May.

The country also announced in May its plans to invest 1 billion pounds ($1.24 billion) in its semiconductor sector over the next decade as part of a long-awaited strategy.

Petrol-powered cars in Britain accounted for 57.1% of all registrations, the industry body added, while large fleet registrations were up by 36.9%, reflecting a regularization of supply following challenges last year.

Ford's Puma and Nissan Qashqai were the most popular cars models among Britons in May, the data showed. ($1 = 0.8065 pounds) (Reporting by Radhika Anilkumar in Bengaluru; Editing by Sohini Goswami and Janane Venkatraman)