Tesla UK sales plunge in January as China brands race ahead

Tesla sold less than half the number of battery-electric vehicles recorded by Chinese rival BYD in the UK last month, data from New Automotive showed on Wednesday, pointing to mounting competitive pressures on the US. automaker.

UK car sales of Tesla plunged more than 57% over the year earlier to 647 vehicles in January, the research group said. The decline was the steepest among major manufacturers, and far exceeded the 6.4% fall seen in the overall UK battery-electric car sales in the month.

The Elon Musk-led company has been losing ground in the UK as its ageing line up grapples with intense competition from Chinese brands such as BYD  and MG, with the CEO’s backing of far-right figures also contributing to the brand’s market share losses across Europe.

Tesla launched its cheaper Model Y and Model 3 variants to jump-start UK sales, but BYD pressed ahead, selling 1,326 battery-electric vehicles last month, up nearly 21% over the year earlier, New Automotive data showed.

U.S. peer Ford led UK’s battery-electric vehicle market, more than doubling its sales in January to 2,271 units.

Overall, total UK car registrations across fuel types fell 4.6% to 133,571 vehicles in January, the data showed.

“UK consumers are still moving towards cars with plugs, and away from those without,” said Tanya Sinclair, CEO, Electric Vehicles UK.

Month-to-month battery-electric vehicle figures can be volatile, especially after an unusually strong December and as manufacturers manage their early year product mix and compliance pathways, Sinclair said.