LONDON, January 6, 2026 – Tesla (TSLA.O) saw its UK car registrations fall by more than 29% year-on-year in December, highlighting the growing competition from Chinese electric vehicle (EV) brands in Britain, the company’s largest European market.
Tesla registered 6,323 new vehicles in the UK last month, according to New AutoMotive data, while 2025 UK sales dropped 8.9% year-on-year. The decline mirrors trends across Europe, where Tesla faces pressure from rival EV makers, an ageing vehicle lineup, and the political stances of Elon Musk in the region.
Chinese EV Brands Surge
Chinese rival BYD (002594.SZ) recorded a nearly five-fold increase in UK registrations, reaching 5,194 units in December. UK data also shows MG (SAIC, 600104.SS) among the country’s top 10 best-selling brands, with BYD at No.6 and MG at No.2.
Despite the decline, Tesla remains Britain’s best-selling EV brand, though BYD’s rapid growth signals intensifying competition. Globally, Tesla recently ceded its position as the top EV maker to BYD, after reporting falling annual sales for a second consecutive year.
In other European markets, Tesla registrations also fell: in the Netherlands, December sales dropped 27% to 4,300 vehicles, according to car industry data from RAI Vereniging.
UK Car Market Overview
Overall UK car registrations grew 3.5% in 2025, reaching 2 million units, marking the first time the market hit this level since the pandemic. Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT), said, “Rising EV uptake is an undoubted positive, but the pace is still too slow and the cost to industry too high.”
Steve Walker, head of digital content at Auto Express, added: “While the transition to EVs isn’t happening as fast as some predicted, the influx of new models and brands from China is creating fierce competition that will continue to force prices down.”
Conclusion
Tesla’s UK sales slump underscores the increasing threat from Chinese EV brands such as BYD and MG, even as total car registrations in Britain grow. The coming year is expected to see intensifying competition and pricing pressure in the UK EV market, challenging Tesla’s dominance in Europe.
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