Chinese electric car titan BYD has overtaken Tesla in British sales for the first time as public opinion sours towards Elon Musk.
BYD sold 1,614 passenger cars last month, with Tesla selling just 1,458 by comparison, according to data published by the Society of Motor Manufacturers and Traders (SMMT).
The figures represented a 500pc annual increase for BYD, while Tesla’s sales were down about 8pc.
It marks the first time that BYD has outsold Tesla on a monthly basis.
Mr Musk, Tesla’s boss and a key ally of Donald Trump, has suffered a drop in popularity since he waded into European politics to back Right-wing parties such as Reform in the UK and the AfD in Germany, polling shows. Separate figures published in Germany on Wednesday show Tesla’s sales plummeted by 59pc there last month.
His company’s weak performance in January came despite generally strong sales of electric cars, which the SMMT said were up 42pc overall compared to a year earlier.
Electric vehicle (EV) sales rose from 20,935 to 29,634, with their market share rising from 14.7pc to 21.3pc.
By comparison, sales of petrol cars fell 15pc to 70,075 while sales of diesel cars fell 8pc to 8,625.
The overall car market shrunk by 2.5pc in January to 139,345 vehicles – the fourth month of decline in a row – with the SMMT blaming “weak consumer confidence and tough economic conditions”.
Driving mass adoption
Carmakers have slashed EV prices in the past year to meet tough targets set under the Government’s zero emission vehicle (ZEV) mandate, which aimed for 22pc of cars sold last year to be electric.
The target rose to 28pc in 2025 and will keep increasing annually until it reaches 80pc in 2030.
However, the SMMT said demand is not currently high enough to meet this year’s goal. It warned that tax rises for EV drivers that are due to enter force in April risk making the industry’s performance even worse.
The SMMT is forecasting that EV market share will reach just 23.7pc in the coming year.
Mike Hawes, the lobby group’s chief executive, said: “January’s figures show EV demand is growing – but not fast enough to deliver on current ambitions.
“Affordability remains a major barrier to uptake, hence the need for compelling measures to boost demand, and not just from manufacturers.
“Rather than penalising EV buyers, we should be taking every step to encourage more drivers to make the switch, helping meet government, industry and societal climate change goals.”
Mr Hawes pointed to a rise in vehicle excise duty coming for EV drivers in April, under which many will qualify for the so-called expensive car supplement for vehicles that cost more than £40,000.
This requires owners to pay another £410 on top of the standard duty for the first five years after a vehicle’s registration. EVs were previously exempt.
The SMMT has also called on the Government to stimulate demand for EVs by cutting VAT on purchases and equalising the rate of the tax charged on public chargers with what homeowners pay to plug in their vehicles at home.
Ministers are also reportedly weighing up taxpayer-guaranteed loans to help boost the market.
Separately, they are consulting on changes to the ZEV mandate that is expected to clarify which cars can be sold from 2030 through 2035 – when sales of combustion engine cars, including hybrids, are expected to be banned outright.
Ian Plummer, of Auto Trader, warned that January looked like “a lacklustre start to 2025 for the new car market”.
He added: “This year will offer its fair share of challenges for established brands, amid economic uncertainty, tariff threats from the US and fierce competition from a growing array of new Chinese entrants.
“There’ll be no let-up in pressure to maintain electric vehicle demand and hit the 28pc target, likely resulting in offers to entice buyers over the coming months.
“The combination of offers and new players vying for their attention could make 2025 a very attractive time to buy a new electric.”
Jamie Hamilton, an automotive analyst at Deloitte, said: “It’s been a slow start for UK car sales in 2025 and the electric vehicle surge needs a bigger push.
“The Government’s reported plans to introduce subsidies for EV consumer loans could provide a much-needed boost to the private market.
“Making EVs more financially accessible is crucial to driving mass adoption and achieving net zero ambitions.
“However, this must be part of a broader strategy that provides manufacturers clarity on 2030 zero emission vehicle targets and addresses the needs of all drivers, including investment in public charging infrastructure.”
Separately on Wednesday, reports in Japan suggested that talks about a proposed $58bn (£46bn) merger of Nissan and Honda were close to collapse.
The car giants revealed discussions about a possible tie-up in December but the Nikkei newspaper said fraught negotiations had so far yielded little results.
Honda is also thought to have ruffled feathers at Nissan by proposing that it takes over its smaller rival, as opposed to an original plan to bring the brands together underneath a new, jointly owned holding company.
(The Telegraph)
