Tesla’s new car sales in the UK fell nearly 60% in July, according to new data from the Association of Automobile Manufacturers and Traders (SMMT), one of the most dramatic declines in the brand’s history recently.
Electric vehicle (EV) manufacturers registered only 987 new cars last month, down from 2,462 in July 2024, down 59.9% year-on-year.
Despite the latest payments to Europe’s best-selling electric vehicles recently, the bottom layer has faced a downturn, highlighting the growing challenges Tesla faces in its global market. Industry analysts pointed out that the combination of factors behind the decline, including consumer rebounds associated with Elon Musk’s public statements, regulatory scrutiny and a competitive EV landscape, with new entrants and traditional automakers strengthening their products.
The decline in Tesla sales also reflects a wider cooling in the UK auto market. Overall new car registrations in July fell 5% year-on-year to 140,154 units, according to SMMT data.
While battery electric vehicles (BEV) sales continue to increase, growth has slowed down. BEV registrations in July increased by 9.1% in July compared to previous months. SMMT now expects 23.8% of new car sales in 2025 to be battery power, an increase from earlier forecasts of 23.5%.
SMMT CEO Mike Hawes said the data reflects the ongoing sensitivity of the new car market to macroeconomic and political conditions.
“The July decline once again shows the sensitivity of the new car market to external factors and the urgent need for consumer certainty,” Hoss said.
Automakers are under pressure to maintain momentum even as consumer navigation rates rise, inflation and mobile EV incentives are rising.
Tesla’s performance will be under the radar in the coming months as the brand attempts to maintain its foothold in major European markets amid growing competition and a mixed sentiment surrounding its leadership.
