VW Overtakes Tesla in Europe’s EV Market, Becomes Plug-In Hybrid Leader

• VW’s BEV sales rose 56% in 2025, while Tesla’s volume dropped by 27%.

• Plug-in hybrid sales lifted VW past Mercedes, with 159,173 units sold.

• Compact SUVs remained Europe’s top segment, led by VW Tiguan and Skoda Elroq.

Volkswagen has ended Tesla’s two-year run as Europe’s top-selling battery-electric vehicle brand in 2025, while also surpassing Mercedes-Benz to lead the plug-in hybrid segment.

VW increased its EV sales by 56% to 274,417 units, according to preliminary data from market researcher Dataforce. Over the same period, Tesla’s sales declined by 27% to 238,765 units. In 2024, Tesla had outsold VW by nearly two-to-one.

The ID.4 was VW’s top-selling electric model in Europe, with 80,123 units sold last year, a 24% increase. Europe’s overall BEV market grew by 30% in 2025, reaching 2,582,595 registrations across the EU, United Kingdom, and EFTA countries.

VW also led Europe’s plug-in hybrid segment, with sales rising 205% to 159,173 units. BMW moved into second place with 142,285 units sold, a 15% gain. Mercedes-Benz dropped to third after its PHEV sales fell 4.8% to 135,878. Combined plug-in hybrid registrations across Europe rose by one-third to 1,273,180 vehicles.

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Volkswagen retained its position as the continent’s best-selling overall automotive brand for a 21st consecutive year, with sales rising 6% to 1,444,194 vehicles. The European passenger car market grew 2.3% to 13.3 million units in 2025.

VW also remained the top seller of gasoline and diesel-powered vehicles. However, sales of both powertrains declined last year. Gasoline vehicles dropped 7% to 5.82 million units, while diesel models fell 19% to 1.52 million.

The company did not place among the top five brands in full hybrid sales. VW is expected to enter that segment in 2026 with the launch of a hybrid T-Roc. Toyota led the hybrid market with 626,675 sales, followed by Renault and MG. The overall hybrid segment grew 9.6% to 1,704,454 units.

Compact SUVs were Europe’s most popular vehicle category in 2025, with registrations rising 17%.  Small SUVs were the second-largest category, growing 1.2%. The VW T-Roc led the segment with a 3.8% sales gain followed by the Toyota Yaris Cross and the Peugeot 2008. The Dacia Duster and Ford Puma also ranked among the top five.

Source: Automotive News