Overall UK car sales fell last month, but electric vehicle volumes increased despite plunging Tesla Inc (NASDAQ:TSLA) sales.
Industry body data just released shows that just 987 new Teslas were registered in the UK in July, 60% less than the 2,462 registered in July last year.
Tesla’s UK market share shrank to 0.7% in July, from 1.67% a year ago, as EV sales for Chinese rival BYD soared and others also filled the gap.
So far in 2025, Tesla sales in the UK are 7% lower than last year, partly as the brand's appeal has been severely dented by CEO Elon Musk's political involvements.
UK electric car sales as a whole grew in July, while overall new car registrations fell 5%, according to the data from the Society of Motor Manufacturers and Traders (SMMT).
This showed that 140,154 vehicles were registered, the weakest July since 2022, though sales of battery-powered vehicles rose 9.1%, giving BEVs a 21.3% share of the market. Plug-in hybrid electric vehicles rose 33% to 17,489.
Strong growth was seen for Tesla's Chinese EV rivals, with BYD more than quadrupling sales to 3,184, boosted by the cheaper Dolphin Surf (pictured), with starting prices under £19K.
So far this year BYD has increased sales 514% to 22,574 compared to just over 23,700 for Tesla, which saw sales fall year-on-year in July.
The industry welcomed the government's recently announced Electric Car Grant, though as it has not yet been confirmed which models will be eligibile, this is likely to have caused some buyers to hold off on a purchase and wait for the discount of up to £3,750.
"July’s dip shows yet again the new car market’s sensitivity to external factors, and the pressing need for consumer certainty," says SMMT chief Mike Hawes.
"Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch.
"That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions."