VW Beats Tesla: Are Historic Firms Winning the EV Race?

VW sold more electric cars in Europe in 2025 than Tesla, ending the US automaker’s long reign at the top.

It comes weeks after Chinese EV maker BYD passed Tesla to become the world’s top-selling electric vehicle manufacturer.

While Volkswagen put on 56% year-on-year sales to hit 274,417, Tesla lost 27% to finish below VW on 238,765 vehicles sold in 2025.

The DataForce figures cover the European Union, the UK and the countries that make up the European Free Trade Association (EFTA): Iceland, Liechtenstein, Norway and Switzerland.

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Historic marques fighting back

VW is not the only automotive company to flex its burgeoning EV muscles.

BMW sold 193,186 electric vehicles in 2025, up 15% on 2024, while Skoda’s sales more than doubled in 12 months to 172,000. Audi is also in the mix, up 51% to 153,848.

At the same time, Volvo Cars is throwing its hat in the ring with the release of the EX60, with a range of 503 miles on a single charge.

Choice is the key

While the Tesla Model Y was the overall best-selling EV in Europe, Tesla’s smaller range of models has had an impact.

VW’s bestsellers, the ID.3 hatchback, ID.4 crossover and ID.7 sedan and wagon, did not make it into the top three in Europe.

But the combined sales of VW’s larger range helped the German firm secure top spot by outselling the Tesla Model Y and Model 3 overall.

The Model Y sold 151,331 vehicles, down 28% from 2024, while the Model 3 sold 86,261 units, down 23.6%.

What does VW offer?

VW’s ID. range, which helped it become Europe’s number one EV seller, includes:

• ID.3: A compact family hatchback similar in size to the Golf, with a 369-mile maximum range and upgraded models including the ID.3 GTX.
• ID.4: A versatile compact SUV, often used as a family car, with a range of up to 351 miles (WLTP) or 291 miles (EPA).
• ID.5: A sleeker, coupé-style version of the ID.4 SUV. It has a 345-mile range.
• ID.7: A premium saloon (sedan) and the ID.7 Tourer (estate/wagon). The Pro S model can do up to 436 miles on one charge.
• ID. Buzz: A fully electric reinterpretation of the classic Microbus, available in 5-, 6-, or 7-seat configurations. Range: Up to 293 miles.

The global picture

After almost a decade on top, Tesla lost the global sales crown to Chinese automaker BYD at the end of 2025. 

Tesla sales fell 8.6% in 2025 and the company reported a 16% decrease in fourth quarter deliveries. 

BYD outsold Tesla for the calendar year as its battery electric vehicle sales increased by 28%.

Tesla first claimed the global EV lead around 2015, surpassing the Nissan Leaf.

For most of the decade, Tesla’s main challenge was production capacity rather than demand.

BYD is finding success in its vertical integration and a wide variety of models at different prices.

In Europe, Tesla offers four models of vehicle while BYD offers at least seven.