Tesla’s rise in the UK car market spotlighted by the Model 3’s success.
- Despite a global microchip shortage, Tesla outperformed traditional leaders.
- In 2021, electrified vehicles accounted for a significant portion of UK car sales.
- Fleet incentives played a vital role in Tesla’s market dominance.
- Public charging infrastructure struggles to keep pace with electric vehicle sales.
Tesla has achieved the status of the second best-selling car brand in the United Kingdom, driven largely by the success of its Model 3. Despite the global shortage of microchips, which has impacted overall car production, Tesla’s rise is particularly notable as it overtakes long-time market leaders like the Ford Fiesta.
In 2021, a total of 1.65 million new cars were registered in the UK, a marginal increase from the previous year’s figures. However, this number remains significantly lower than the pre-pandemic average. The shift towards electrified vehicles was evident, with such models constituting one in four new car registrations during the year.
Tesla’s contribution was significant, delivering 9,290 vehicles in December alone, which accounted for 36% of all electric vehicle registrations for that month. For the year, Tesla delivered nearly 36,000 vehicles, representing a 40% increase from 2020 numbers. The Model 3 notably outpaced competitors, finishing just behind the Vauxhall Corsa in overall sales.
The majority of Tesla Model 3 registrations are believed to be company fleet vehicles, incentivised by government policies that offer a 100% tax deduction and exemption from certain taxes and charges for zero-emission cars. Additionally, drivers benefit from a significantly reduced benefit-in-kind tax rate.
However, while the electric car market is expanding, infrastructure challenges persist. The provision of public charging points has not kept up with the rapid increase in electric vehicle numbers, with concerns raised about the availability and reliability of such facilities. This disconnect could pose challenges for future growth, according to industry experts.
Tesla’s strong performance in the UK underscores the growing shift towards electric vehicles, amidst challenges in supply and infrastructure.
