Finance
Volkswagen overtook Tesla as Europe's top EV seller in 2025
Published by Global Banking & Finance Review®
Posted on February 5, 2026
2 min readLast updated: February 5, 2026
Quick Summary
In 2025, Volkswagen overtook Tesla as Europe's leading EV seller, with a 56% sales increase, while Tesla's sales fell by 27% amid rising competition.
Volkswagen Surpasses Tesla as Europe's Leading EV Seller in 2025
Volkswagen's Rise in the European EV Market
Feb 5 (Reuters) - Volkswagen overtook Tesla in sales of fully-electric cars in Europe in 2025, data from JATO Dynamics showed on Thursday, another setback for the U.S. automaker after China's BYD dethroned it as the world's top EV maker last year.
Sales Performance of Volkswagen and Tesla
JATO said sales of Volkswagen brand battery electric vehicles (BEVs) in Europe rose 56% last year versus 2024 led by strong sales of its new ID.7.
Impact of Competition on Tesla's Sales
Registrations of Tesla cars, on the other hand, dropped 27% in the same period.
Overall EV Market Growth in Europe
Volkswagen sold 274,278 BEVs in Europe last year while Tesla sold 236,357, according to JATO data.
Tesla's small, ageing car lineup faces tough competition in Europe from both traditional European automakers and a rising number of Chinese rivals. The company also faced a consumer backlash in Europe over CEO Elon Musk's backing of far-right parties on the continent.
EVs made a "significant step forward" in Europe in 2025, JATO Dynamics said, with fully-electric car registrations jumping 29% compared to the previous year.
Overall cars registrations grew by just 2.3% in 2025, the data showed.
The report included data from 28 European countries, including non-EU members Norway, Switzerland and Britain, but excluding Bulgaria and Malta.
(Reporting by Javi West Larrañaga; editing by Nick Carey)
Key Takeaways
- •Volkswagen surpassed Tesla in European EV sales in 2025.
- •Volkswagen's sales rose 56% with the new ID.7 model.
- •Tesla's sales dropped 27% amid rising competition.
- •Overall EV registrations in Europe increased by 29%.
- •Tesla faces challenges from European and Chinese automakers.
Frequently Asked Questions about Volkswagen overtook Tesla as Europe's top EV seller in 2025
1What is a battery electric vehicle (BEV)?
A battery electric vehicle (BEV) is a type of electric vehicle that is powered entirely by electricity stored in batteries, with no internal combustion engine.
2What is market capitalisation?
Market capitalisation is the total market value of a company's outstanding shares, calculated by multiplying the share price by the total number of shares.
3What is consumer backlash?
Consumer backlash occurs when customers express strong disapproval of a company's actions or policies, which can impact sales and brand reputation.
4What is EV market growth?
EV market growth refers to the increase in sales and adoption of electric vehicles, driven by factors like environmental concerns and technological advancements.
