LONDON — Tesla’s UK sales dropped sharply in February compared with the same month last year, though the electric vehicle maker continued to outsell Chinese rival BYD in the British market, according to data released by research group New Automotive.

Contents

Growing competition in the UK EV market Electric vehicles continue gaining market share

Tesla sold 2,208 vehicles in the United Kingdom in February, marking a 45.2% decline year-on-year. BYD, one of China’s fastest-growing electric vehicle manufacturers, recorded strong growth with sales rising 40.9% to 968 units during the same period.

Also Read: BYD reports 41% drop in February 2026 sales as domestic demand slows

The figures indicate that while Tesla still holds a stronger position in the UK market, rising competition from Chinese automakers is steadily reshaping the electric vehicle landscape.

New Automotive said Tesla’s delivery patterns can fluctuate throughout the year, but early data suggests a broader slowdown. The company’s UK sales for 2026 so far are down about 5% compared with the same period last year, potentially drawing greater scrutiny from analysts and industry observers.

Growing competition in the UK EV market

Tesla has faced mounting competition in Europe as Chinese brands expand their footprint in the region. Automakers such as BYD and SAIC-owned MG have increased their market presence, offering newer electric models and competitive pricing.

At the same time, Tesla’s current vehicle lineup — including the Model 3 and Model Y — is facing pressure from a wider range of alternatives entering the market.

Sales trends in other European countries reflect similar challenges. Tesla reported declining February sales in markets including Italy, Denmark and Sweden, suggesting the slowdown may not be limited to the UK alone.

Despite Tesla’s decline, electric vehicle adoption in the UK continued to grow. Battery-electric vehicles accounted for roughly one quarter of all car sales in February, according to New Automotive.

When plug-in hybrid vehicles are included, about one in three newly registered cars in the UK had some form of electric power.

Ben Nelmes, chief executive of New Automotive, said the figures highlight continued consumer interest in electric mobility.

“It is fantastic to see one in four motorists opting for an electric car in February,” Nelmes said, noting that rising fuel prices are pushing more drivers to consider electric alternatives.

Overall car registrations in the UK across all fuel types rose 3.6% year-on-year in February to 83,377 vehicles, the data showed.