Volkswagen knocks Tesla off top spot in Europe: ID.3, ID.4 and ID.7 deliver big growth as demand slows for Model 3 and Model Y
Tesla still leads the EV sales race in Australia but the US car-maker had a tough 2025 in Europe where it has lost the lead for the first time to the Volkswagen Group.
According to Dataforce, last year the German car-making giant delivered a total of 274,417 EVs – 56 per cent more than the 175,654 battery-powered vehicles it shifted in 2024.
Over the same 12 months, sales of Tesla Model 3 and Model Ys dropped by an alarming 27 per cent from 326,714 units in 2024 to just 238,765.
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The big fall was remarkable considering the Tesla Model Y managed to still hold on as Europe’s top-selling EV, with an impressive 151,331 units of the mid-size SUV were delivered last year.
However, that figure is 28 per cent down on the number sold in 2024, when 210,265 Model Ys were sold.
In a distant second place, Europe’s next most popular electric car was the Skoda Elroq (94,106), with the Tesla Model 3 in third (86,261).
Elevating the VW Group into first place is an uptake in the Volkswagen ID models, with ID.4 SUV finding 80,123 homes last year, representing an uplift of 23.8 per cent.
Sales of the now seven-year-old ID.3 were also up by an impressive 44.4 per cent, with 78,667 of the all-electric hatches sold.
Finally, the ID.7 sedan (pictured top) racked up 76,368 units, representing a big 137.2 per cent rise.
The VW performance was underpinned by sales in its German home market, where the ID.7, ID.3 and ID.4/5 took all three spots on the podium.
Volkswagen’s dominant year in Europe also included the brand securing the top spot for plug-in hybrids with 159,173 sales (+205 per cent) and combustion sales (737,821).
But Toyota still ruled the roost when it came to traditional hybrid sales (626,675).
Globally, Tesla’s woes worsened with BYD becoming the world’s biggest EV maker after it shifted an incredible 2,256,714 EVs in calendar year 2025. Some 1,636,129 Teslas were sold over the same period.
Back in Australia, while Tesla remains the country’s favourite EV maker, annual sales declined for a second consecutive year, with 28,856 Model 3 and Model Y sold in 2025.
That’s down 24.8 per cent on the 38,347 reported in 2024.
