Volkswagen has surpassed Tesla to become the top-selling electric vehicle (EV) brand in Europe for the first time since 2022. This shift reflects a significant turnaround in the automotive market, where competition is intensifying and consumer preferences are evolving rapidly.
European EV Market Dynamics
In 2025, Volkswagen sold 274,417 EVs in Europe – a 56% increase year-over-year. Meanwhile, Tesla’s sales dropped by 27% to 238,765 units. This reversal is especially notable considering Tesla outsold Volkswagen by a two-to-one margin just one year prior, in 2024. The broader European EV market also saw growth, with overall sales rising by approximately 30% to 2,582,595 units, according to Dataforce figures.
Top-Selling Models
Despite the brand-level shift, Tesla’s Model Y remained the best-selling EV in Europe, with 151,331 units sold (though down 28%). Volkswagen secured the next three positions: the ID.4 (80,123 sales, up 23.8%), the ID.3 (78,667 sales, up 44.4%), and the ID.7 (76,368 sales, a dramatic 137.2% increase). The Skoda Elroq and Renault 5 E-Tech rounded out the top five.
Global Context
Volkswagen’s success in Europe comes as Chinese manufacturer BYD recently overtook Tesla as the world’s largest EV seller. This highlights a broader trend of rising competition in the global EV market, where established players are facing increased pressure from new entrants.
Volkswagen’s Broader Performance
While Volkswagen saw growth in Europe and South America (an 18.1% increase), its global EV sales were nearly flat, with 382,000 deliveries compared to 383,100 in 2024. The company did experience declines in North America and China. However, EVs now represent 8.1% of Volkswagen’s total sales (4.73 million), up from 7.9% the previous year.
Beyond EVs
Volkswagen also led in sales of plug-in hybrids, gasoline vehicles, and diesel cars across Europe, outperforming Peugeot, Mercedes-Benz, and BMW in those respective categories. Toyota led in full hybrid sales.
Australia’s Position
In Australia, Volkswagen finished 2025 as the tenth-best-selling EV brand, but it demonstrated strong growth and ranked 14th overall, surpassing Tesla and Mercedes-Benz in total sales.
This shift in market leadership underscores the dynamic nature of the EV industry, where brand dominance is not guaranteed. The competition between Volkswagen, Tesla, and other automakers will likely continue to intensify as the EV market matures.
