Volkswagen has overtaken Tesla in Europe in total EV sales in 2025. The 89-year-old German company also reported higher sales than its rivals in petrol, diesel, and plug-in hybrid (PHEV) vehicle sales in Europe. Moreover, Volkswagen reported tenth highest EV sales in Australia in 2025.
Volkswagen vs. Tesla in EV sales
| Brand | EV sales in Europe (2025) |
| Volkswagen | 274,417 (+56% YoY) |
| Tesla | 238,765 (-27% YoY) |
This data represents a significant turnaround in EV sales performance. In 2024, Tesla sold around twice as many EVs as Volkswagen in Europe. Volkswagen’s European success came despite the company closing several factories in 2025.
MORE: Volkswagen to reintroduce physical buttons in future models
Volkswagen’s performance globally and regionally
Volkswagen recorded strong growth across its entire EV lineup: ID.4 (SUV), ID.3 (hatch), and ID.7 sedan/wagon sales all went up in 2025. Globally, Volkswagen sold 382,000 EVs in 2025, down 0.2% from 2024. EVs made up 8.1% of Volkswagen’s total sales, which was 7.9% in 2024. Overall, the company sold 4.73 million vehicles in 2025.
Volkswagen’s performance by region in 2025
The company’s overall sales for all vehicles went up 5.1% (with 1,318,100 vehicles) in Europe. In South America, Volkswagen’s sales are up by 18.1%. The sales, however, went down by 8.2% in South America and in China, the sales fell by 8.4%.
Volkswagen vs. rivals across multiple powertrains in Europe
In 2025, Volkswagen sold more vehicles than its rivals across multiple power types. The only category Volkswagen did not lead was full hybrids, which were topped by Toyota.
- EVs: More than Tesla
- Petrol vehicles: More than Peugeot
- Diesel vehicles: More than Mercedes-Benz
- Plug-in hybrids (PHEVs): More than BMW
Europe’s best-selling EV models
EV sales in Europe (including the UK) grew by around 30% in 2025, reaching 2,582,595 units. Even though Tesla lost the brand sales crown, the Tesla Model Y remained Europe’s best-selling EV.
| EV models | 2025 sales in Europe | YoY change |
| Tesla Model Y | 151,331 | -28% |
| Skoda Elroq | 94,106 | NA |
| Tesla Model 3 | 86,261 | NA |
| Renault 5 E-Tech | 81,517 | NA |
| Volkswagen ID.4 | 80,123 | +23.8% |
| Volkswagen ID.3 | 78,667 | +44.4% |
| Volkswagen ID.7 | 76,368 | +137.2% |
MORE: 8 ways to maximise your EV range
Volkswagen’s performance in Australia
In 2025, Volkswagen ranked 10th in total EV sales in Australia. The brand recorded strong EV sales growth and finished 14th overall among all car brands, surpassing Tesla and Mercedes-Benz.
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