by Volkswagen Overtakes Tesla in the European Electric Car Market
Just two years ago, the situation was completely different: Tesla dominated the European market, and Volkswagen even suspended production of the ID.3 model due to low demand. However, now the German auto giant is showing impressive growth, overtaking its American competitor.
Sales Dynamics
Overall, the Volkswagen Group sold 4.41 million vehicles of all types in January-June 2025, which is 1.3% more than in 2024. However, sales of all-electric models grew by 47%, reaching 465 thousand units. In Europe, this figure increased by 89% – to 347.9 thousand cars.
Although Tesla does not disclose detailed data for Europe, it is known that its global sales fell to 384 thousand cars in the first half of the year.
According to Dataforce, in the first five months of 2025, Tesla sold only 76.4 thousand cars in Europe, while Volkswagen sold 122.6 thousand electric vehicles. In April, the German concern sold three times more cars than the American manufacturer.
Financial Aspects
Volkswagen’s success is partly linked to discounts on models like the ID.3, which temporarily reduces profitability. A company representative stated that they still make a profit from selling electric cars, but the operating margin is still below the target of 6.5%.
Volkswagen is pinning its hopes on a new line of affordable electric cars, which are set to appear in 2026, including the ID.2 and Cupra Raval. These models could improve the company’s financial performance. At the same time, sales growth helps the brand move away from the consequences of “Dieselgate” and meet the EU’s strict CO2 emission requirements.
Interestingly, the biggest growth within the Volkswagen Group was shown by the Škoda (+197%) and Porsche (+236%) brands, while Audi increased sales by 34%. China remains a problematic market – there, VW’s electric car sales fell by 34.5%.
