Tesla UK sales drop 29% as Chinese rival BYD races to close gap

Tesla's UK car registrations fell 29% year-on-year in December to 6,323 units, according to New AutoMotive data. For all of 2025, UK sales dropped 8.9% as the electric vehicle maker faces intense competition from Chinese rivals and an ageing lineup. The decline mirrors trends across Europe, with Tesla registrations also falling 27% in the Netherlands during December.

Chinese competitor BYD saw UK registrations surge nearly fivefold to 5,194 units in December alone, racing to close the gap. Despite the drop, Tesla remains Britain's best-selling electric car brand. However, BYD recently overtook Tesla globally as the world's top EV maker after Tesla reported its second consecutive year of declining sales.

Overall UK car registrations grew 3.5% in 2025 to 2 million vehicles—the highest level since the pandemic. Chinese brands are making significant inroads, with SAIC's MG ranking as Britain's second best-selling car brand and BYD at sixth in December.

With Tesla's market position weakening under political pressure and competition, and BYD gaining momentum both in Britain and globally, is this the beginning of a permanent shift in EV market leadership or a temporary setback for the American brand?

SOURCE: https://www.channelstv.com/2026/01/06/tesla-uk-car-sales-drop-29-as-chinese-brands-gain-ground/