Tesla has achieved a remarkable milestone, ranking as the second best-selling new car brand in the UK in 2021.
- The market faced challenges due to pandemic-related microchip shortages, impacting overall sales.
- Tesla’s Model 3 stands out, surpassing many traditional competitors, including the Ford Fiesta.
- Electric and hybrid vehicles accounted for a significant portion of new car registrations.
- Generous incentives for company electric cars have bolstered Tesla’s success.
In 2021, Tesla made significant strides in the UK automotive market, securing the position of the second best-selling new car brand amidst a challenging landscape. Despite a global microchip shortage that has distorted the market, Tesla’s ascent is noteworthy, particularly given the absence of the Ford Fiesta from the top ten, a model that has dominated UK sales for years.
During this period, a total of 1.65 million new cars were registered in the UK, a slight increase from the previous year’s 1.63 million, which marked the lowest sales since the recession of 1992. This figure, however, remains significantly below the expected 2.3 million, illustrating the continuing challenge the industry faces, although the rise of electric vehicles, accounting for a quarter of all registrations, offers a glimmer of hope.
In December alone, Tesla delivered 9,290 units, representing 36% of all electric vehicle registrations for the month, primarily facilitated through leasing deals. Over the entire year, Tesla delivered nearly 36,000 vehicles, reflecting a 40% increase compared to 2020. The Model 3, in particular, emerged as a formidable competitor, second only to the Vauxhall Corsa, which has introduced an electric variant unlike the Ford Fiesta.
Battery-powered vehicles constituted approximately 11.7% of total new car sales, with plug-in hybrids and self-charging hybrids making up another 15.9%. Tesla’s Model 3 and its electric counterparts primarily serve the corporate sector, driven by attractive incentives such as a 100% first-year tax deduction, exemption from vehicle excise duty, and minimized company car taxes.
The microchip shortage has also led to a 15% annual increase in new car prices, yet demand remains strong, with projections suggesting sales will rise to 1.96 million in 2022. The Society of Motor Manufacturers and Traders anticipates electric vehicle sales will soon surpass those of diesel, which accounted for only 14% of the market last year. However, the rise in electric car popularity is tempered by inadequate public charging infrastructure, which has not kept pace with increasing sales, creating challenges for consumers reliant on public charging stations. The UK must address these infrastructure concerns to maintain its competitive edge in attracting electric vehicle allocations and ensuring consumer confidence in electric mobility.
Tesla’s impressive rise underscores the transformative shift towards electric vehicles, highlighting the need for robust infrastructure to support this evolution.
