Tesla hit by sharp UK sales drop as Chinese EV brands close in

Tesla’s grip on the UK electric vehicle market loosened sharply at the end of 2025, as fresh data pointed to a steep December sales decline. At the same time, Chinese manufacturers accelerated their push into Britain, reshaping competition in Europe’s largest EV market.

According to Reuters, the figures underline mounting pressure on the U.S. carmaker as consumer choice widens and rivals scale up fast.

December downturn

Industry data cited by Reuters showed Tesla’s UK car registrations fell more than 29% year-on-year in December. Registrations, which are widely used as a proxy for sales, dropped to 6,323 vehicles during the month, according to figures from research group New AutoMotive.

Across the full year, Tesla’s UK sales declined 8.9% compared with 2024, reflecting a broader slowdown seen in several European markets.

Chinese momentum

By contrast, Chinese automaker BYD recorded a near five-fold jump in UK registrations in December, reaching 5,194 vehicles, New AutoMotive data showed. Other Chinese brands also made gains, with MG and BYD ranking among Britain’s top 10 best-selling car brands for the month, according to the Society of Motor Manufacturers and Traders (SMMT).

Despite the surge from rivals, Tesla remained the best-selling electric car brand in the UK overall, though the gap is narrowing.

Wider European pressure

Reuters noted that Tesla’s UK slowdown mirrors trends elsewhere in Europe, where the company has faced intensifying competition, an ageing model lineup, and political controversy surrounding chief executive Elon Musk.

In the Netherlands, Tesla registrations fell 27% in December to 4,300 vehicles, based on data from industry body RAI Vereniging.

Globally, Tesla recently lost its position as the world’s top electric vehicle maker to BYD after reporting annual sales declines for a second consecutive year.

Market still growing

The UK car market as a whole continued to expand in 2025. New car registrations rose 3.5% to 2 million vehicles, the first time that level has been reached since the pandemic, SMMT data showed.

SMMT chief executive Mike Hawes said rising EV adoption was positive but warned the transition remained costly for manufacturers. Auto Express’s Steve Walker added that the influx of Chinese brands was creating fierce competition likely to keep downward pressure on prices.

Sources: Reuters