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Volkswagen Surpasses Tesla as Europe’s Top EV Seller in Q1 2025

Tesla faces a steep 37% sales decline in Europe as EV adoption accelerates, with Volkswagen achieving a 157% surge in registrations.

A worker attaches a part to a Mercedes-Maybach car on a production line of "Factory 56", one of the world's most modern electric and conventional car assembly halls of German carmaker Mercedes-Benz, in Sindelfingen near Stuttgart, Germany, March 4, 2024. REUTERS/Wolfgang Rattay/File Photo/File Photo
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Overview

  • Battery-electric vehicle (BEV) registrations in Europe grew by 23.9% in Q1 2025, reaching 412,997 units and capturing 15.2% market share.
  • Volkswagen registered 65,679 BEVs in Q1, overtaking Tesla, which saw its sales drop to 53,237 units, a 37% year-over-year decline.
  • Tesla's market share in Europe fell to 2% in March, down from 2.9% a year ago, with sales impacted by the Model Y production refresh and brand controversies linked to Elon Musk.
  • Hybrid electric vehicles retained the largest share of the European market at 35.5%, while petrol and diesel car sales continued to decline sharply.
  • The EU's stringent emission targets and growing competition from Chinese and Korean automakers are reshaping the European automotive landscape.