Volkswagen has surpassed Tesla to become Europe’s top electric vehicle (EV) brand in 2025, marking a major shift in the European EV market. While Tesla’s Model Y remained the best-seller, it wasn’t enough to fend off Volkswagen’s growth in the region.
Volkswagen’s Growth Outshines Tesla’s Decline
Tesla’s performance in Europe has shown signs of stagnation, with traditional automakers like Volkswagen gaining significant ground. Volkswagen sold 274,417 electric vehicles across the European Union, the United Kingdom, and countries within the European Free Trade Association (EFTA)—Iceland, Liechtenstein, Norway, and Switzerland. This marks a 56% increase compared to 2024.
By contrast, Tesla sold 238,765 EVs in Europe in 2025, a 27% decline from the previous year. The Model Y was Tesla’s best-seller, with 151,331 units sold, a 28% drop from 2024. The Model 3, Tesla’s third-best-seller, sold 86,261 units, down 23.6%.
Volkswagen’s success came from a strong performance of its ID.3 hatchback, ID.4 crossover, and ID.7 sedan and wagon. Though none of these models reached the podium for top-selling EVs, their combined sales outpaced Tesla’s Model Y and Model 3, propelling Volkswagen to the top spot.
Best-Selling EV Brands in Europe in 2025
The top EV brands in Europe for 2025 were:
| Rank | Brand | 2025 Sales | % Difference vs. 2024 |
|---|---|---|---|
| 1 | Volkswagen | 274,417 | +56% |
| 2 | Tesla | 238,765 | -27% |
| 3 | BMW | 193,186 | +15% |
| 4 | Skoda | 172,100 | +117% |
| 5 | Audi | 153,848 | N/A |
Volkswagen’s success is especially notable given earlier struggles with software issues in its ID series models. Early versions of the ID.3 and ID.4 faced criticism for unresponsive touchscreens, software glitches, and overall reliability. However, improved software versions have resolved many of these issues, contributing to Volkswagen’s recent success.
Volkswagen’s Progress and Future Plans
Volkswagen is not stopping here. The company plans to launch even more affordable EV models, including the ID. Polo and ID. Polo Cross. These new models will integrate lessons learned from the ID.4, offering improved functionality and better designs, such as proper buttons for essential features like rear electric windows.
Growing Competitors: BMW, Skoda, and Audi
Volkswagen’s rise also highlights how other traditional automakers are gaining ground on Tesla. BMW secured third place in 2025, benefiting from the launch of the iX3 crossover and the upcoming i3 model. Skoda also saw significant growth, thanks to its popular and affordable Elroq. Audi rounded out the top five with a 51% increase in sales last year.
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