Finance
Tesla UK car sales drop 37% as Chinese competition heightens, SMMT data shows
Published by Global Banking & Finance Review®
Posted on March 5, 2026
2 min readLast updated: March 5, 2026
Quick Summary
Tesla’s UK registrations in February tumbled 37% year‑on‑year to 2,422 units, while UK new car sales surged 7.2% to 90,100—the strongest February since 2004—and Chinese EV maker BYD continues to gain ground.
Tesla UK Car Sales Plunge 37% in February 2024 Amid Intensifying Chinese Competition
Tesla Faces Steep Decline in UK Sales as Chinese Rivals Gain Ground
Significant Drop in Tesla Sales
March 5 (Reuters) - Tesla's UK sales dropped 37% in February from a year earlier, data from the Society of Motor Manufacturers and Traders (SMMT) showed on Thursday, as the automaker stayed under pressure from booming demand for EVs from Chinese competitors such as BYD.
Tesla's sales declined to 2,422 vehicles during the month from 3,852 units a year earlier, the data showed.
Overall UK Car Market Performance
Overall, total new car sales in the UK rose 7.2% to 90,100 units, marking the best February since 2004, the data showed, helped by recovering private retail sales.
Tesla’s Response to Sales Figures
"Tesla monthly registration figures are not an accurate reflection of sales or orders taken," a spokesperson for Tesla said in an email sent to the UK media, adding that quarterly registrations gauged Tesla sales better due to the way vehicles were delivered into the UK from its factories.
"Across January and February the orders and reservations from customers far exceed their respective months in 2025 and 2024, however these orders remain unfulfilled as we have not yet registered and delivered these cars to customers," the Tesla spokesperson said.
Comparison with Chinese Competitors
BYD’s Rising Sales
The SMMT data echoed trends revealed by transport research firm New Automotive on Wednesday, which showed Tesla sales dropped to nearly half at 2,208 vehicles in February.
New Automotive data showed BYD sales rose 40%, but volumes continued to trail Tesla. SMMT data showed BYD sales soared 83% but still lagged Tesla in volumes.
Data Discrepancies and Methodologies
SMMT and New Automotive use different data sources and calculation methods, explaining the differences in the figures.
(Reporting by Prerna Bedi in Bengaluru; additional reporting by Nick Carey in London; Editing by Mrigank Dhaniwala)
Key Takeaways
- •Tesla’s UK February registrations plunged dramatically, a sign of intensifying competition from Chinese entrants like BYD (tradingeconomics.com)
- •Overall UK new‑car market grew strongly: up 7.2% YoY to 90,100 units—the best February since 2004—driven by private retail and fleet segments, though BEV share edged down slightly (tradingeconomics.com)
- •BYD’s momentum in UK is accelerating: Chinese brands accounted for nearly 10% of UK registrations in 2025, with BYD among fastest growers, underscoring rising pressure on Tesla and legacy automakers (theguardian.com)
References
Frequently Asked Questions about Tesla UK car sales drop 37% as Chinese competition heightens, SMMT data shows
1How much did Tesla's UK car sales drop in February 2024?
Tesla's UK sales dropped 37% in February 2024 compared to a year earlier, according to SMMT data.
2Which Chinese competitor is increasing pressure on Tesla in the UK?
BYD is one of the main Chinese competitors intensifying pressure on Tesla, with UK sales rising sharply.
3How did overall new car sales perform in the UK in February 2024?
Total new car sales in the UK rose 7.2% to 90,100 units in February 2024, marking the best February since 2004.
4Why might monthly Tesla registration figures not reflect actual sales accurately?
Tesla states that quarterly registrations better reflect sales due to the delivery structure of vehicles into the UK.
5Did BYD outsell Tesla in the UK in February 2024?
Despite sharp sales growth, BYD's volumes still lagged behind Tesla's in the UK in February 2024.