Tesla Leads UK Electric Car Market Despite European Declines

Tesla continues to outpace competitors in the UK electric vehicle sector even as its European market share faces a significant downturn. According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), Tesla sales in Britain climbed by more than 7 per cent in August, reaching 3,243 units. Despite this monthly gain, the brand has experienced a dip of over 5 per cent in sales for the year to date.

The situation across mainland Europe paints a starker picture for Tesla. Sales have declined by a third this year, with noticeable shortfalls in critical markets such as France and a marked slowdown among Scandinavian early adopters. In contrast, British consumers remain steadfast, helping Tesla retain its leading status in the growing UK electric vehicle landscape.

More than a quarter of all new cars sold in the UK last month were battery electric models, capturing a 26 per cent market share. This rising demand comes even as total new car sales slipped by 2 per cent in August to 82,900, one of the quietest months before September’s pent up demand during the new plate change. Across the first eight months of 2025, new car sales in the UK have increased by 2 per cent to reach 1.26 million, with electric vehicles constituting 22 per cent of purchases. This figure remains short of the government’s zero emission vehicle mandate of 28 per cent.

Industry players attribute renewed consumer interest to the restoration of electric vehicle grants, offering taxpayer-backed discounts of up to £3,750 on eligible cars priced up to £37,000. This incentive, paired with the launch of affordable sub £20,000 models such as the Hyundai Inster, has broadened the market and increased accessibility for car buyers seeking a zero emission alternative. Mike Hawes, chief executive of SMMT, remarked on the breadth of choice now available to consumers across every segment, emphasising that weekly grant updates add further momentum to the transition to electric vehicles.

Chinese automakers have also gained impressive traction in Britain. BYD, China’s largest carmaker, quadrupled its UK sales last month to 1,700 vehicles. Year to date, BYD has delivered 24,300 units, closing rapidly on Tesla’s 26,900 tally. Jaecoo, a newcomer from the Chery group, entered the UK market only recently yet has already achieved 11,600 sales, including 1,300 last month alone.

The true test of the government’s revitalised grant scheme and the growing range of affordable electric vehicles will be the September registrations. Observers are watching closely to gauge ongoing consumer confidence as drivers weigh up an increasingly diverse and economically viable electric car offering.