Volkswagen Overtakes Tesla in European EV Market for the First Time
Volkswagen has officially surpassed Tesla in electric vehicle (EV) sales across Europe during the first quarter of 2025, marking a significant shift in the region’s fast-evolving EV landscape. The German automaker achieved a strong performance with three models ranking among the top ten best-selling battery electric vehicles (BEVs).
Europe’s EV Market Sees Record-Breaking Quarter
March 2025 became the second-best month on record for EV registrations in Europe, with 240,891 new BEVs hitting the roads — a 23% increase compared to March 2024. Electric vehicles accounted for 17% of the total market share, meaning nearly one in five new cars registered was electric.
While the figure still falls short of the all-time high of 275,108 BEVs registered in December 2022, it contributed to making Q1 2025 the most successful quarter for BEV sales in European history.
Tesla’s Decline Despite Model Y Juniper Launch
Despite launching the updated Model Y Juniper, Tesla continued to struggle with declining sales. According to data from JATO Dynamics, Tesla retained its title as the top-selling BEV brand in March 2025, although its registrations dropped 30% year-over-year.
That said, the monthly decline was less severe compared to the drops in January (-47%) and February (-44%), offering a slight silver lining for the U.S. automaker.
Volkswagen Takes the Lead
Tesla’s downward trend led to its fall to second place in the quarterly rankings, with 53,237 BEVs registered — a 38% year-on-year decrease. In contrast, Volkswagen posted a 157% surge, registering 65,679 units and claiming the top spot.
BMW also showed strong momentum, selling 46,557 BEVs — a 21% increase — while Audi and Renault rounded out the top five with 34,739 (+51%) and 31,880 (+89%) units sold, respectively.
Model Y and Model 3 Still Lead Individual Rankings
Tesla’s Model Y and Model 3 remained the most registered BEV models in Q1 2025, with 29,770 (-49%) and 23,044 (-14%) units sold. However, the anticipated sales boost from the new Model Y Juniper did not materialize; it saw just 15,164 registrations in its first full month (March), marking a 43% year-over-year drop.
Volkswagen Dominates the Model Rankings
Volkswagen’s success was driven by strong performance from three of its models — the ID.4, ID.7, and ID.3 — which ranked 3rd, 4th, and 6th respectively among the best-selling BEVs.
Other notable entries in the top ten included the Kia EV3 (5th), Renault 5 E-Tech (8th), and Citroën e-C3 (10th).
Tesla Still Leads in the U.S. Market
In the United States, Tesla maintained its dominant position in Q1 2025, capturing 43.5% of the EV market despite a year-on-year decline of 8.6%. A total of 296,227 EVs were sold in the U.S. during the quarter — an 11.4% increase from the same period last year — with Tesla accounting for 128,100 units.
Modest Growth for Europe’s Overall Car Market
Total vehicle registrations in Europe reached 1,423,340 in March 2025, marking a 3.2% year-on-year increase. For the quarter, total registrations hit 3,383,986 units, effectively flat compared to Q1 2024 (down just 0.02%).
Peugeot 208 topped the charts as the best-selling model in March, while the Dacia Sandero maintained its lead in quarterly rankings.
Other Brands Also Face Steep Declines
Tesla wasn’t alone in facing sales declines. Several other automakers posted significant drops in Q1 2025, including:
Maserati: -39%
Mitsubishi: -43%
Smart: -65%
Lancia: -73%
Abarth: -75%
Jaguar: -82%
