MILAN, Jan 2 (Reuters) - Sales of new cars in Italy fell by 2.12% last year to 1.53 million units with Chinese brand BYD performing strongly, transport ministry data showed on Friday.

In December, new car sales increased by 2.2% from a year earlier to 108,075, the ministry said.

BYD, which has expanded its retail network in Italy to over 100 outlets selling both electric and hybrid models, recorded an eight-fold surge in sales in the country last year, to almost 24,000 vehicles from fewer than 3,000 in 2024.

In December it sold 3,347 new cars, up 428% year-on-year, ahead of releasing its latest Atto2 DMI plug-in model.

Orders for the vehicle, which will hit the market in the first quarter, are doing well, it said in a statement.

Rapid growth in Europe has helped BYD strip Tesla of its title as the world's top electric vehicle maker, with data showing on Friday the Chinese car maker outsold Tesla in 2025 for the first time on an annual basis.

Tesla, whose global sales fell around 8.6% in 2025, posted an 18% decline in sales of its electric vehicles in Italy last year, despite an 85% jump in December compared to the same month of 2024.

Registrations of new cars for market leader Stellantis, whose brands include Fiat, Alfa Romeo, Lancia, Jeep, Peugeot and Opel, fell 5.54% in December versus last year, Reuters calculations showed.

Its market share shrank to 21.5%, according to the same calculations, compared to 23.8% in November.

(Reporting by Valentina Za and Gianluca Semeraro; Editing by Kirsten Donovan)