Britain’s new car market continued its recovery in May 2025, with vehicle registrations rising for the second straight month. According to data released by the Society of Motor Manufacturers and Traders (SMMT), total new car sales increased by 1.6% year-over-year to 150,070 units—making it the strongest May since 2021.
Electric vehicles (EVs) played a major role in this growth, accounting for more than 47% of total sales. Battery electric vehicles alone saw a 25.8% jump compared to May last year, driven largely by aggressive discounting across the EV segment.
However, not all automakers benefited from this surge. Tesla’s UK sales fell sharply—down by over 36% year-on-year to just 2,016 units. The decline comes amid growing competition from Chinese EV brands, which are rapidly expanding across Europe with highly competitive pricing. Some reports, including one from research group New AutoMotive, estimate Tesla’s sales drop in the UK to be as steep as 45%.
The intensified price war is putting pressure on established automakers as Chinese brands gain market share by sacrificing margins for volume. While the overall market is showing signs of recovery, traditional players like Tesla are now facing new challenges in retaining their dominance in the fast-growing EV space.
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