Volkswagen Overtakes Tesla In Europe EV Sales In 2025 As ID.4 And ID.7 Lift Volumes

Volkswagen has moved ahead of Tesla in sales of battery electric cars in Europe in 2025, based on data from market researcher JATO Dynamics. The Volkswagen brand registered 274,278 battery electric vehicles across 28 European markets, while Tesla recorded 236,357 units. Volkswagen volumes rose 56% from 2024, and Tesla registrations fell 27% in the same period. 

The swing follows three years of rapid change in the region’s EV market. In 2023, Tesla was the largest battery electric brand in Europe with about 362,000 registrations, ahead of around 202,000 for Volkswagen. That year, the Tesla Model Y and Model 3 led the model charts, with the Volkswagen ID.4 in third place among battery electric cars. Battery electric registrations reached a little over 2 million units and took 15.7% of the new car market. 

In 2024, battery electric demand in Europe stalled. Total registrations of fully electric cars slipped 1.2% to 1,985,996 units and market share eased to 15.4%. The Volkswagen Group remained the largest seller of battery electric cars as a manufacturing group with more than 427,000 units, while Tesla stayed ahead at brand level but faced slower growth and rising competition. JATO data pointed to higher prices, uncertainty over incentives and concern over charging networks as factors behind the weaker demand for EVs. 

The picture changed again in 2025. JATO reported that fully electric car registrations in Europe rose 29% from 2024 to about 2.6 million units, giving them a market share close to 19.5% of new passenger car sales. Within that growth, Volkswagen’s battery electric range recorded the strongest gains, while Tesla volumes fell. Analysts link the drop at Tesla to a line-up based mainly on the Model Y and Model 3, competition from European and Chinese EV makers and lower impact from earlier price cuts. 

Volkswagen’s rise is linked to a broader EV portfolio. Industry data show that the ID.4 sport-utility was the brand’s best-selling EV in Europe in 2025 with about 80,000 units. The ID.3 hatchback and the newer ID.7 liftback together added more than 150,000 registrations. Earlier market reports show the ID.4 and ID.7 taking high positions in monthly European EV rankings in early 2025. This spread of models across segments has allowed Volkswagen to reach company and fleet buyers as well as private users. 

Tesla still holds the top spot in Europe by individual model. The Model Y remained the region’s best-selling battery electric car in 2025, even though its registrations declined from the previous year. But the brand’s overall share has narrowed as rivals add new EVs and cut prices. 

The shift from Tesla to Volkswagen at brand level marks a new phase in Europe’s EV market. From 2023 to 2025, total battery electric volumes in the region have moved from growth led by one maker to broader participation by several brands. With tougher emission rules due in 2025 and more mass-market EV launches planned, both Volkswagen and Tesla now face stronger competition from European groups and Chinese manufacturers in the race for future EV sales.