UK new car sales drop in April on weak consumer confidence

(Reuters) - British new car registrations fell more than 10% year-on-year in April, including a 62% plunge for Tesla, hit by weak consumer confidence and tax increases, industry data showed on Tuesday.

The Society of Motor Manufacturers and Traders said 120,331 vehicles were registered in the traditionally quieter month of April, with sales of new Teslas slumping to 512 from 1,352 in the same month a year ago.

Elon Musk's closeness to U.S. President Donald Trump and his far-right politics in Europe have resulted in a public outcry against him and his company, and - alongside competition and an ageing product lineup - have tanked Tesla's sales globally.

Trump's auto tariffs have also added to uncertainty in the sector, with U.S. being the second-biggest importer of British-made cars after the European Union.

"As tariffs on cars being sold to the U.S. are implemented... (it) is likely to have a material impact on UK car production, with the U.S. a key market for UK automotive companies," said Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte.

UK registrations of battery electric vehicles rose 8.1% in April, taking a 20.4% market share, but still below the 28% target set by the government, the SMMT said.

The SMMT trimmed its 2025 market share forecast for BEVs to 23.5% from its January estimate of 23.7%.

One winner in April was China's BYD, which saw a 654% year-on-year surge in UK registrations, taking new sales to 2,511 vehicles in April from 333 last year.

Overall volumes last month were also impacted by an increase in vehicle excise duty, which came into effect from April 1 and pushed purchases into March.

(Reporting by Yamini Kalia and Yadarisa Shabong in Bengaluru. Editing by Mrigank Dhaniwala and Mark Potter)