Tesla loses ground to BYD in the UK. Same story everywhere it seems.
In a trend that mirrors the intensifying electric vehicle battle currently unfolding in Malaysia, Tesla has suffered a significant blow in its largest European market. New industry data reveals that Tesla’s car registrations in the United Kingdom dropped by more than 29% year-on-year in December 2025, underscoring the relentless pressure from Chinese rivals, particularly BYD.
According to data from New AutoMotive, the Elon Musk-led giant saw registrations—a proxy for sales—fall to 6,323 units last month. For the full year of 2025, Tesla’s UK sales declined by 8.9%.
The BYD Surge
While Tesla stumbled, its main global rival, BYD, recorded explosive growth. The Chinese automaker, which has been aggressively expanding in right-hand drive (RHD) markets like the UK and Malaysia, saw its British registrations jump nearly five-fold to 5,194 units in December.
This puts BYD within striking distance of Tesla’s monthly volume in the UK, a scenario that was unthinkable just two years ago.
Although Tesla retained its position as Britain’s best-selling electric car brand for the year, the gap is narrowing rapidly. This mirrors the global shift reported last week, where Tesla formally ceded its crown as the world’s top EV maker to BYD after reporting a second consecutive year of falling annual sales.
Chinese Brands Dominate the Charts
The data highlights a broader shift in consumer preference toward Chinese EVs, driven by competitive pricing and fresher model lineups compared to Tesla’s aging fleet.
What’s interesting is that MG is ranked number 2 among Britain’s best-selling cars even though it’s now owned by the Shanghai Automotive Industry Corporation (SAIC). BYD is not to far behind at number 6 – not bad considering they’re focused on NEVs.
This surge comes as the overall UK market recovers. New car registrations in Britain rose 3.5% in 2025 to reach 2 million units, hitting that milestone for the first time since the pandemic, according to the Society of Motor Manufacturers and Traders (SMMT).
Struggles Across Europe
Tesla’s woes were not isolated to the UK. In the Netherlands, another key EV market, Tesla registrations fell 27% to 4,300 vehicles in December.
Analysts attribute Tesla’s European slump to a combination of three factors: intense competition from Chinese manufacturers, a lack of new mass-market models, and consumer reaction to Musk’s political stance.
For Malaysian buyers, the UK market often serves as a key indicator for Right-Hand Drive (RHD) trends. With BYD already challenging Tesla locally with the Atto 3, Dolphin, and Seal, the dramatic shift in the UK suggests that Chinese automakers are successfully winning over legacy premium buyers.
As 2026 kicks off, all eyes will be on whether Tesla can make a comeback. They’ve yet to announce CKD plans in Malaysia and CBU units will have to undergo a price rise soon as stocks clear.
