Volkswagen has surged ahead in Europe’s electric vehicle market, more than doubling its EV registrations in the first quarter of 2025 and surpassing Tesla by over 12,000 units. According to JATO Dynamics data covering 28 European markets, Volkswagen recorded 65,679 battery electric vehicle (BEV) registrations in Q1 2025, a remarkable 157% increase compared to the same period last year. Meanwhile, Tesla’s European registrations fell sharply by 38% to 53,237 units, marking a significant decline for the American EV leader.
Tesla’s drop in Europe has been attributed in part to brand perception challenges linked to CEO Elon Musk’s political controversies, which have alienated some buyers in key markets like Germany. Despite the arrival of the updated Model Y “Juniper,” Tesla’s sales continued to slide, with the new Model Y posting 15,164 registrations in March 2025-a 43% decrease year-over-year. Tesla’s Model 3 and Model Y remain the top-selling electric models in Europe, but their volumes are shrinking.
In contrast, Volkswagen’s strong growth is driven by popular models like the ID.4, which offers a competitive range and pricing that appeal to a broad audience. Other European brands are also gaining ground: BMW increased BEV sales by 21% to 46,557 units, Audi grew 51% to 34,739, and Renault nearly doubled deliveries with an 89% rise to 31,880 units in Q1 2025.
The overall European BEV market is booming, with battery-electric vehicle sales reaching 570,943 units in Q1 2025-a 28% year-over-year increase and the strongest quarter on record. BEVs now account for 17% of all new car registrations in Europe, up from 13.3% a year earlier. March 2025 alone saw 240,891 BEV registrations, capturing 16.9% market share.
While Tesla still leads in some respects, its declining sales and market share in Europe highlight growing competition and shifting consumer preferences. Volkswagen’s resurgence signals a return to prominence for legacy automakers in the EV space, capitalizing on expanding model lineups, improved affordability, and strong dealer networks.
With Tesla’s European sales down across most major markets-some experiencing declines as steep as 70%-and rivals gaining momentum, the European EV landscape is clearly evolving. Volkswagen’s dominant Q1 performance underscores this shift, marking a new era where traditional carmakers are reclaiming ground from early EV pioneers.
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