Tesla’s car registrations in the United Kingdom fell sharply by more than 29 per cent year-on-year in December 2025, highlighting mounting pressure from Chinese competitors in Europe’s key EV market.
Okay News reports that the Elon Musk-led company’s UK registrations—a proxy for sales—dropped to 6,323 units last month, according to New AutoMotive data.
For the full year 2025, Tesla’s UK sales declined 8.9 per cent.
The slump mirrors challenges across Europe, attributed to an ageing model lineup, intensifying competition, and backlash over Musk’s political activities.
In stark contrast, registrations for Chinese rival BYD skyrocketed nearly fivefold to 5,194 units in December, rapidly closing the gap.
Tesla retained its crown as Britain’s best-selling electric car brand, but BYD’s momentum signals a shifting landscape.
The downturn contributed to Tesla ceding the global EV sales lead to BYD after two consecutive years of annual declines for the U.S. firm.
Separately, Tesla registrations in the Netherlands plunged 27 per cent to 4,300 vehicles in December, capping a 44 per cent full-year drop.
Overall, Britain’s new car market grew 3.5 per cent in 2025 to 2.02 million registrations—the first time exceeding two million since the pandemic—per Society of Motor Manufacturers and Traders (SMMT) preliminary data.
Chinese brands shone brightly, with SAIC’s MG ranking second and BYD sixth among December’s top 10 best-selling brands.
SMMT Chief Executive Mike Hawes welcomed rising EV uptake but warned the pace remains too slow amid high industry costs.
The trends underscore Chinese automakers’ aggressive push into Europe with fresher, affordable models, reshaping competition in the world’s transition to electric vehicles.