Tesla's UK sales plunged 50% in a year as Chinese rival BYD sold almost twice as many EVs last month
Tesla sold 44 per cent less electric cars than Chinese rival BYD in the UK in January as increased competition from China continues to take a toll on Elon Musk's firm.
Registrations of Teslas plunged more than 50 per cent compared to the same month in 2024, with only 718 entering the road in January compared to 1,458 a year earlier, figures shared by the Society of Motor Manufacturers and Traders (SMMT) show.
In contrast, BYD delivered 4,021 cars to Britons, of which 1,326 were EVs.
Tesla posted the biggest decline in electric-only car sales of any major manufacturer and dropped to the 20th most popular brand, separate analysis by New Automotive reveals.
Tesla has been losing ground in the UK as its ageing line up grapples with intense cut-price competition from Chinese brands, such as BYD, MG and a host of newcomers.
The controversial CEO's outspoken right-wing political stance is also believed to have contributed to Tesla's market share losses across Europe.
Official UK vehicle registrations data published on Thursday show stagnant demand for battery electric cars in general, with a marginal 0.1 per cent annual rise in sales.
Tesla sold 44 per cent less electric cars than Chinese rival BYD in the UK in January
While Tesla registered only 718 car sales in the UK last month, BYD shifted 1,326 EVs
Tesla has recently attempted to jump-start UK sales with the launch of cheaper 'Standard' versions of its Model Y SUV and Model 3 saloons.
In contrast, BYD is seeing sales boom. It recorded 4,021 registrations in total, increasing by almost 150 per cent year-on-year to see the Chinese brand claim a UK market share of 1.16 per cent.
Of all BYD sales, a third (1,326) were EVs, up nearly 21 per cent over the year earlier, New Automotive's data showed.
But a much more established automotive name sits at the top of the EV sales charts, with Ford claiming bragging rights.
The popularity of its growing EV range - which now consists of the Puma Gen-E (the electric version of the UK's best-selling car for the last three years), Explorer, Capri, Mustang Mach-E and E-Tourneo MPVs - saw the blue oval brand double its EV sales in January to 2,271 units.
The Puma Gen-E was the most purchased EV model in January among the general driving public, who are listed as 'private buyers' (not fleet or business registrations).
Kia, Volkswagen, Skoda, Audi, BMW, Renault, Mercedes, Vauxhall, Hyundai and Polestar all registered more than 1,000 EV sales last month, the data shows.
In contrast, Tesla's slide down the order means Peugeot, Volvo, Mini, MG, Cupra and budget Chinese newcome Leapmotor outsold the US company in January.
New Automotive lists the brands with the highest EV sales in January, with Tesla plummeting to 20th overall in the order
Overall, total UK car registrations across all fuel types grew by 3.4 per cent to 144,127 vehicles in January, the SMMT's data showed on Thursday.
Sales of petrol cars fell 1.9 per cent to 68,757 units. This means petrol models still represent almost half (47.7 per cent) of all new registrations.
Diesels fell more significantly by 8.8 per cent year-on-year in January to just over 7,800 cars. Diesels now account for only one in 20 showroom sales.
It means battery electric vehicles made up 20.6 per cent of new car registrations in January - well below the binding target of 33 per cent outlined by the Zero Emission Vehicle (ZEV) mandate.
Tesla has recently launched cheaper 'Standard' versions of its Model Y SUV (pictured) and Model 3 saloons in an effort to jump-start UK sales
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New Automotive claimed the downturn in EV sales is a 'pattern reflecting delivery timing and early-year seasonality rather than a change in underlying demand.'
However, it went on to blame 'significant flexibilities' in the ZEV mandate - including using CO2 emission reductions and hybrid sales to contribute towards ZEV credits. It says this has allowed car makers to continue pushing the availability of combustion engine cars in showrooms.
Meanwhile, plug-in hybrid electric vehicles (PHEVs) have been stealing sales from 100 per cent electric cars.
A number of Chinese brands growing in popularity in Britain have successfully launched a selection of PHEVs, which is triggering a resurgence in demand for this particular fuel type.
The SMMT's data showed that PHEVs were the 'standout performer' in January, with registrations rising 47.3 per cent compared with last January as over 18,300 new examples entered the road.
PHEVs recorded a market share of 12.9 per cent, which is almost on par with conventional 'self-charging' hybrids, which accounted for 13.4 per cent of all new motors last months.
It also means that a third (33.5 per cent) of all new cars sales last month were vehicles with plugs.
Ben Nelmes, CEO at the EV-backing group, said: 'Changes to the mandate last year have given carmakers significant flexibility in how they meet the targets, and we are starting to see the impact of those changes.'
Tanya Sinclair, CEO of campaign group Electric Vehicles UK, added: 'British consumers are still moving towards cars with plugs, and away from those without.'
Ian Plummer, AutoTrader’s chief customer officer, was less positive about the sales figures, though: 'While the new car market overall is in growth, the virtually flat performance of battery EVs is an early concern, being well below the 33 per cent mandate for new electric vehicle sales this year.
'While almost two thirds of car buyers are considering an electric for their next car, we need to ensure that consideration turns into actual sales, so there is clearly more to be done.'
