Jan 6 (Reuters) – Tesla’s UK car registrations dropped by more than 29% year-on-year in December, industry data showed on Tuesday, underscoring the intense competition faced by the U.S. electric vehicle maker in its largest European market.
The Elon Musk-led company’s UK registrations – a proxy for sales – fell to 6,323 units last month, according to data from New AutoMotive. For 2025, Tesla’s UK sales fell 8.9% year-on-year.
The drop echoed trends seen in other European markets such as France and Sweden, where Tesla sales have suffered due to competition, an ageing lineup and Musk’s political stance in Europe.
In contrast, UK car registrations for Chinese rival BYD jumped nearly five-fold to 5,194 units in December.
Still, Tesla retained its position as the best-selling electric car brand in Britain last month even as BYD races to close the gap, New AutoMotive data showed.
Tesla ceded its crown as the world’s top electric vehicle maker to BYD after the U.S. firm reported last week annual sales that fell for a second year, hit by rising competition, the expiry of U.S. tax credits and backlash towards the brand.
Separately, Tesla registrations in the Netherlands fell 27% to 4,300 vehicles in December, leading to a 44% drop in 2025, data released by car industry RAI Vereniging showed on Monday.
Overall, Britain’s car registrations grew in 2025, according to separate data from New AutoMotive and trade body Society of Motor Manufacturers and Traders (SMMT) released on Tuesday.
New car registrations in Britain rose 3.5% in 2025 to 2 million, the first time they reached that level since the pandemic, SMMT’s preliminary data showed.
“Rising EV uptake is an undoubted positive, but the pace is still too slow and the cost to industry too high,” Mike Hawes, SMMT Chief Executive said in a statement.
(Reporting by Yadarisa Shabong and Rishab Shaju in Bengaluru; additional reporting by Alessandro Parodi; Editing by Leroy Leo)
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