VW Beats Tesla in Quarterly EV Sales Across Europe for First Time

Volkswagen capitalizes on Europe’s increased interest in electric driving

Volkswagen (VW) has scored a significant victory in the electric vehicle (EV) race by overtaking Tesla’s new battery electric vehicle (BEV) sales in Europe for the first time during Q1. VW Group CEO Oliver Blume said, “Now we’re shifting into the fast lane” after the company’s EV sales bolstered the brand’s overall Q1 success, according to Electrek. During the first three months of 2025, VW sold 65,679 BEVs, representing a 157% year-over-year increase. The VW Group, which includes VW, Audi, and Porsche, now holds the lead in Europe’s BEV market share at 26%.

Tesla experienced a sales decline in every European market during 2025 except for the UK, which grew by 3.5%, according to Reuters data. Germany saw the biggest new BEV registration drop for Tesla during Q1 at a 62% decline, followed by Sweden and Denmark at 55%, nearly 50% in the Netherlands, and 41% in France. Tesla’s Q1 Europe BEV registrations also lagged behind BMW.

These figures are especially worrisome for Tesla since Europeans aren’t backing away from EV purchases. March represented the second-best month ever for Europe’s EV registrations, and BEV sales hit 240,891 for a 23% year-over-year increase, representing a 17% market share, Carscoops reports. Q1 was the continent’s strongest quarter in history for BEV growth. Tesla’s refreshed Model Y, the Model Y Juniper, had its first full month of European sales in March when it documented 15,164 registrations, a 43% year-over-year drop for the SUV. While Tesla experienced a 30% year-over-year European sales decline in March, it was still Europe’s best-selling EV brand, and these percentages mark a solid improvement over January’s 47% and February’s 44% drops for the company. Deliveries for the Model Y Juniper also won’t begin for the UK until May. 

Volkswagen’s future EV plans emphasize affordability without entering cutthroat price wars

German drivers played a central role in helping VW overtake Tesla in Europe during Q1. Almost half of every BEV sold in Germany during Q1 came from a VW Group brand, with the ID.7 Tourer and Audi Q6 e-tron being especially popular. VW’s CEO confirmed the brand would be launching new models this year, and that the company is releasing over 30 new models in China by the end of 2027, 20 of which will be New Energy Vehicles (NEVs). In late 2025 or early 2026, VW will release its ID.2, a compact hatchback starting at €25,000 ($28,364) that will be the brand’s most affordable BEV to date. VW has hinted at making an SUV version of the ID.2 and plans to launch the ID.1 in 2027, which would overtake the ID.2 as the automaker’s least-expensive BEV.

Final thoughts 

While VW’s numbers for BEV sales in Europe are noteworthy, expanding in China poses a more significant challenge for the brand. During Q1, BYD sold the most BEVs in China at 416,388 units compared to Tesla’s 336,681, according to Teslarati. The VW Group’s BEV sales in China declined 37% during Q1 amid its European market success, according to a report from CBT News. China’s EV price war, led by BYD, is a primary competitive factor for VW, which has prioritized value over volume as part of its long-term investment strategy. Still, VW can progress in China over BYD, which is selling models for as little as $7,800, by continually expanding its portfolio and leveraging local tech partnerships that provide the country’s consumers with standout driver-assist features.