Tesla has posted a modest rebound in UK sales, with 7,700 new vehicles registered in June—up 3.7% on the same month last year, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT).
Despite the improvement, the electric carmaker’s UK performance remains slightly down for the year. Between January and June 2025, Tesla registered 22,700 vehicles, a 1.3% year-on-year decline.
The uptick in June follows a sluggish start to the year, with Tesla blaming delays in the production of its updated Model Y at its Berlin gigafactory and buyer hesitation while awaiting the newer version.
Earlier this week, the company reported a 13% drop in global sales during Q2, citing a range of challenges, including CEO Elon Musk’s increasing involvement in politics, intensifying competition from Chinese rivals such as BYD, and a more crowded EV marketplace as traditional automakers ramp up electric production under regulatory pressure.
Yet Tesla continues to lead the UK’s zero-emission vehicle (ZEV) market, commanding a 10% share of battery electric vehicle sales so far this year, according to data from consultancy New AutoMotive. BMW and Volkswagen trail behind, each with around 8%.
More broadly, the UK’s electric vehicle market recorded strong growth in June, with battery electric vehicle (BEV) registrations up 39% to 47,300 units. That means EVs accounted for 24.8% of the 193,000 new cars registered during the month—a 6.7% year-on-year rise in overall market volume.
However, despite the encouraging figures, the BEV share still falls short of the 28% target set by the government under its zero-emission vehicle mandate. That mandate, introduced this year, requires carmakers to hit rising targets for ZEV sales or face financial penalties. The threshold climbs to 33% in 2026.
SMMT chief executive Mike Hawes reiterated calls for stronger government support, warning that current EV uptake is being driven by unsustainable levels of manufacturer discounting and sales channel incentives.
“A second consecutive month of growth for the new car market is good news, as is the positive performance of electric vehicles,” Hawes said. “But this growth is still being propped up by industry-backed support. Without government action—through measures like VAT cuts or revising luxury car tax supplements—meeting the ZEV mandate targets remains in jeopardy.”
He also urged the government to address the disparity in VAT rates between public and home EV charging, which he said was a barrier to equitable EV adoption.
The latest figures show a continued decline in internal combustion engine sales. Petrol cars accounted for 46% of new registrations in June, down from 51% a year earlier, while diesel dropped to below 6%.
Plug-in hybrids and standard hybrids now represent nearly 24% of the market, underlining the UK’s ongoing shift toward electrified mobility—even if the path to full electrification remains uneven.
