In a major shake-up of the European electric vehicle (EV) landscape, Volkswagen has overtaken Tesla as the top-selling EV brand in the region during the first half of 2025, according to new data from Dataforce. The German automaker sold 133,465 electric cars across the EU, EFTA, and UK markets between January and June — a commanding 78% increase over the same period last year.
In contrast, Tesla’s European performance faltered significantly. The U.S. brand saw its EV sales drop by 33%, totaling just 107,878 units in the first six months of the year. That decline cost Tesla its crown as Europe’s EV king, as Volkswagen surged ahead with a lead of 24,587 units.
While Tesla still held onto two of the top spots for individual model sales — the Model Y and Model 3 — it was the only major manufacturer to register a year-over-year sales drop. Even a June resurgence, where Tesla led the monthly EV sales charts, wasn’t enough to close the gap created earlier in the year.
Legacy Brands Making Electric Strides
Volkswagen’s triumph as a brand, not as part of the larger Volkswagen Group, underscores the shifting momentum in Europe’s highly competitive EV market. The brand’s success was largely fueled by strong performances from its ID lineup, including the ID.4, ID.7, and ID.3 — all of which ranked among Europe’s five best-selling EVs for the first half of the year.
Other European manufacturers also posted strong growth. BMW took third place overall with 93,576 EVs sold, marking a 14% increase year-over-year. Škoda, benefiting from the runaway popularity of the new Elroq and refreshed Enyaq, achieved a staggering 146% increase in sales, moving 70,947 units and cementing its status as a rising force in the EV space.
Renault also posted a notable 58% gain, thanks largely to the buzz surrounding the retro-styled Renault 5.
Tesla’s Global Challenges Reflect in Europe
Tesla’s global operations have encountered headwinds in 2025, with CEO Elon Musk previously attributing early-year production delays to factory upgrades needed for the revamped Model Y. Despite promises of a demand rebound, the company’s European numbers have yet to reflect any meaningful recovery.
In June alone, Tesla sold 32,605 EVs in Europe — a 21% decline compared to the same month in 2024. Meanwhile, its competitors surged ahead: Volkswagen sales grew by 9%, BMW by 16%, Škoda by a remarkable 189%, and Renault by 22%.
A Growing Market, but Shifting Leaders
The overall European EV market remains on a robust growth trajectory, expanding by 24% year-over-year. In the first half of 2025, a total of 1,177,051 electric vehicles were sold, up from 944,858 in the same period in 2024.
However, the dynamics within the market are evolving rapidly. Tesla’s early-mover advantage is being steadily eroded by established automakers who are now hitting their stride in EV development and production.
With Volkswagen firmly in the lead and competitors gaining ground, the second half of 2025 is set to be a pivotal chapter in the race for EV dominance in Europe.
Source: Automotive News