Tesla’s UK registrations slump nearly thirty percent in December while rivals such as BYD achieve rapid growth amid wider market trends
Tesla’s new car registrations in the United Kingdom dropped sharply in December 2025, underscoring intensifying competition in the country’s automotive market.
Data from industry analysts show that
Tesla registrations fell more than twenty-nine percent year-on-year to around 6,323 units in the final month of the year, reflecting both an ageing vehicle lineup and mounting competitive pressure from rival manufacturers.
This downturn comes against the backdrop of broader shifts in the UK market, where total registrations still rose and demand for electric vehicles (EVs) continued to expand.
Chinese automakers made significant gains over the same period.
Registrations of vehicles from BYD surged nearly five-fold to over 5,000 units in December, narrowing the gap with
Tesla and highlighting strong consumer interest in competitively priced EV models from overseas brands.
Despite the downturn in volume,
Tesla remained the best-selling electric vehicle brand in the UK for the month, albeit with a reduced lead.
Analysts have linked the shifting dynamics to both the growing availability of attractive models from Chinese manufacturers and a softer competitive edge from
Tesla’s current lineup.
For the full calendar year 2025,
Tesla’s UK sales also declined, with total registrations falling by about eight point nine percent compared with the previous year.
This mirrored broader trends elsewhere in Europe, where
Tesla has faced market share erosion amid strong Chinese competition and localized factors affecting consumer preferences.
At the same time, overall UK new car registrations surpassed two million vehicles in 2025 for the first time since before the pandemic, buoyed by strong private demand and a rising share of battery-electric vehicles.
Industry observers note that the rise of competitive Chinese brands and the evolution of consumer tastes toward more affordable and diverse EV offerings are reshaping the UK automotive landscape.
Chinese manufacturers such as BYD, MG and Chery have significantly expanded their presence, contributing to a record increase in Chinese-brand market share.
This aligns with a broader trend in Europe, where Chinese EV makers are rapidly gaining ground by combining quality, value and range in key segments.
As
Tesla plans its future product rollout and adjusts to shifting market conditions, the company’s performance in the UK will be watched closely by investors and competitors alike.
The evolving competitive environment underscores both the opportunities and challenges in one of Europe’s most dynamic electric vehicle markets.