Move Over Tesla! Volkswagen Grabs Europe’s EV Sales Crown

Last updated: 2026/02/08 at 8:13 AM

News Room Published 8 February 2026

Unlike the US, EV sales are booming in Europe—but it’s Germany’s Volkswagen, not Tesla, that’s reaping the spoils.

According to new data from automotive analyst JATO Dynamics, EV sales in Europe rose 29% to 2,572,491 units in 2025. That means almost one in five—19.5%—of cars sold in Europe are now electric. Meanwhile, overall vehicle sales in the region ticked up a measly 2.2% year-on-year from 2024.

According to the data, first reported by Ars Technica, sales of Volkswagen’s electric cars grew an impressive 56%, while Tesla’s fell by 27%. Put into concrete numbers, VW sold 274,278 EVs, compared with Tesla’s 236,357.

Volkswagen’s other brands also performed well. Škoda placed fourth in the European EV rankings, selling 171,703 units. Audi followed in fifth place with 153,845 sales, while Cupra ranked 15th after selling 79,269 EVs. Meanwhile, Porsche landed in 21st place, with 32,715 electric vehicles sold.

But Tesla’s Model Y still holds the crown as Europe’s most popular electric vehicle. The Model Y remains the region’s most-registered EV, with 149,805 units sold in Europe in 2025—though sales still declined 28% year-on-year. The Model 3 also lost favor with European consumers, with sales falling 24% to 85,393 units.

But Tesla isn’t the only automaker losing ground. Sales of Volvo’s EX30 declined even more sharply, with registrations dropping 37% to 49,110 units.

While EV makers like Volkswagen continue to post strong growth, the figures come as the European Union has rolled back some of its support for the EV transition. In December, the bloc’s executive arm said that new cars sold after 2035 could still be plug-in hybrids or vehicles with internal combustion engines—a departure from its initial vision of 100% EV sales by that date.

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Europe is not the only region currently warming up to EVs. According to UK market research firm Rho Motion, EV sales in China hit 6.5 million, a 29% year-to-date increase, between July 2024 and July 2025.

Tesla, meanwhile, may be looking to boost revenue beyond car sales. The company removed its free Autopilot driver-assist features from its vehicles last month, meaning consumers who want access to tools such as Autosteer must now pay $99 per month for Full Self-Driving (FSD). The news comes as Tesla also continues to roll out its robotaxi service in new cities across the US, getting permission from regulators to start testing in Phoenix, Arizona in late 2025.