Tesla UK Sales Slide as Competition Intensifies, While BYD Surges in Electric Vehicle Market

Tesla’s presence in the UK electric vehicle market weakened significantly in December as new data highlighted growing competitive pressures across Europe. According to industry figures released by New AutoMotive, Tesla’s UK car registrations dropped by more than 29% year-on-year, falling to 6,323 units for the month. Car registrations are widely viewed as a proxy for vehicle sales, and the sharp decline underscores the challenges facing the U.S. electric vehicle maker in one of its most important European markets.

Looking at the broader picture, Tesla’s UK sales declined 8.9% year-on-year in 2025, reflecting sustained headwinds rather than a one-off dip. Similar trends have been observed in other key European countries, including France and Sweden, where Tesla has struggled amid intensifying competition, an ageing product lineup, and backlash linked to CEO Elon Musk’s political stance in Europe.

In contrast, Chinese electric vehicle manufacturer BYD is rapidly gaining ground. UK registrations for BYD jumped nearly five-fold in December to 5,194 units, highlighting strong consumer demand for alternative EV brands. Despite this surge, Tesla still managed to retain its position as the best-selling electric car brand in Britain for the month, although the gap between the two rivals is narrowing quickly.

Globally, Tesla recently lost its crown as the world’s largest electric vehicle maker to BYD after reporting annual sales declines for a second consecutive year. The downturn has been attributed to rising competition, the expiry of key U.S. tax incentives, and growing brand backlash in several markets.

Elsewhere in Europe, Tesla’s challenges continued in the Netherlands, where December registrations fell 27% to 4,300 vehicles. For 2025 overall, Tesla’s registrations in the country plunged 44%, according to data from industry body RAI Vereniging.

Despite Tesla’s struggles, the wider UK automotive market showed resilience. New car registrations in Britain rose 3.5% in 2025 to reach 2 million units, marking the first time sales have returned to that level since the pandemic, according to preliminary data from the Society of Motor Manufacturers and Traders. While electric vehicle adoption is rising, industry leaders warn that progress remains slower than needed and increasingly costly for manufacturers.