Tesla overtaken by China's BYD in the UK car sales charts

Chinese giant BYD has done what many a few years ago would have deemed impossible by overtaking Tesla in UK new-car sales last month, signalling the ‘Build Your Dreams’ brand is here to stay.

In May, just over 3,000 new BYD models were registered in the UK – five times more than the same period in 2023. So far this year, the brand’s top seller has been the Seal U hybrid SUV, which sits above the Atto 3, Seal and Dolphin EVs in the brand’s model range. 

On the other hand, only a little more than 2,000 new Teslas hit the road last month, meaning it’s a third down compared with its main rival. Although BYD is still lagging behind Tesla for overall UK sales in 2025, it’s not by that much; the Chinese maker has registered 14,807 models here  since the beginning of this year, compared with Tesla’s 15,002.

In a statement, Elon Musk’s EV brand was also keen to point out that while it is 33 per cent behind year-on-year in terms of new registrations, this is due to a switchover in production of the revised Model Y. 

Tesla says it’s “comfortably” been taking orders for the new car and while it does not pre-register new examples – meaning sales figures are severely down this month – it does expect a return to form in June.

Chand Chudasama, partner at Price Bailey, an accounting firm with heavy experience in the automotive sector, said: “While the shift to electric vehicles is gaining momentum, consumer sentiment remains fragile. Increasingly the switch to electric cars is being led by cheaper Chinese brands such as BYD at the expense of premium models like Tesla."

Chudasama continued, emphasising that Tesla’s momentum in the UK market will rely heavily on future trade negotiations between the US and UK; while cars imported here won’t necessarily be subjected to tariffs like the ones inflicted on UK cars exported to the US, Tesla may in time be forced to raise prices in Britain in order to recoup some of the financial impact caused by additional duties.

All of this comes after what has been described by the UK’s Society of Motor Manufacturers and Traders (SMMT) as a “return to form” for the UK car market, with just over 150,000 new cars being registered last month – one-and-a-half per cent up on the same period last year.

EV registrations accounted for 22 per cent of new-car sales in May, but at 21 per cent for the year so far, the electric car market share remains far behind the 28 per cent demanded by the UK’s tough ZEV Mandate rules.

SMMT chief executive Mike Hawes said: “A return to growth for new car registrations in May is welcome, but manufacturer discounting on new products continues to underpin the market, notably for electric vehicles.”

Hawes warned that such practices “cannot be sustained indefinitely as it undermines the ability of companies to invest in new product development – investments which are integral to the decarbonisation of all road transport.”

Next week, Chancellor Rachel Reeves is set to outlay the details of the government’s Spending Review. This, the SMMT is hoping, will include a halving of VAT on new EV sales, cutting VAT on public charging to match that of home electricity and lifting the so-called ‘luxury car tax’ threshold for electric cars – all things the organisation believes will bolster sales.

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