Volkswagen has reclaimed the top spot in Europe’s electric vehicle (EV) market, overtaking Tesla in 2025 after a sharp rebound in sales across the region. New industry data shows the German automaker posted strong year-over-year growth in battery-electric vehicle deliveries, while Tesla experienced a notable decline, marking a significant shift in Europe’s EV landscape.
According to industry data compiled by Dataforce and reported by Automotive News, Volkswagen delivered approximately 274,000 battery-electric vehicles (BEVs) in Europe in 2025, representing year-over-year growth of more than 50 percent. Over the same period, Tesla’s European EV sales fell sharply, declining about 27 percent to roughly 239,000 units.
Despite losing the brand crown, Tesla still held onto an important individual model title. The Model Y remained Europe’s best-selling BEV in 2025, with 151,331 units delivered. However, that figure was down nearly 30 percent compared to the year before. The Model 3 also saw declining sales, finishing the year with just over 86,000 deliveries.
Conversely, Volkswagen’s success was driven less by a single vehicle and more by the strength of its broader lineup. The ID.4 led the brand’s electric portfolio with more than 80,000 sales, followed closely by the ID.3 and the rapidly growing ID.7. The latter posted triple-digit growth year over year, highlighting how newer and refreshed models helped Volkswagen regain momentum in Europe’s highly competitive EV segment.
The wider European EV market also expanded significantly in 2025. Total BEV sales climbed roughly 30 percent to about 2.6 million units, including the UK. While Tesla struggled to keep pace with that growth, Volkswagen capitalized on rising demand by offering electric options across multiple vehicle sizes and price points, a strategy that appears to have resonated with buyers.
Volkswagen’s strong performance extended beyond BEVs. The brand also led Europe in plug-in hybrid electric vehicle (PHEV) sales and finished first overall across all powertrain types, including gas and diesel. That helped cement Volkswagen’s position as Europe’s top-selling automaker overall, a title it has now held for more than two decades.
Globally, however, the picture is more mixed. Volkswagen’s total EV deliveries worldwide were essentially flat year over year, with growth in Europe offset by declines in North America and China.
