It was a new twist in February 2025 when the electric vehicle (EV) market in Europe witnessed Volkswagen and BMW Group leapfrogging Tesla in sales, according to the data from JATO Dynamics. The shift represents growing competition within the EV industry and shows altering consumer behavior in Europe.
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Tesla’s battery-electric vehicle (BEV) registrations in 25 European Union markets, including the UK, Norway, and Switzerland, declined by 44% compared to February 2024, accounting for less than 16,000 units. The decline reduced Tesla’s market share to 9.6%, its lowest February performance in five years. Contributing factors to the decline are CEO Elon Musk’s political campaigns in Europe and the phasing out of the current Model Y variant.
Volkswagen and BMW’s Dominance
Meanwhile, Volkswagen’s BEV sales jumped by 180%, reaching nearly 20,000 units sold in February. The BMW Group, including both the BMW and Mini brands, also posted strong numbers with almost 19,000 BEVs sold over the same period. The numbers indicate the increasing popularity of their growing electric offerings among European buyers.
Chinese Manufacturers Picking Up Pace
Chinese producers are also gaining strong footholds in the European EV market. BYD BEV sales increased by 94% to over 4,000 units, and Polestar saw an 84% rise, selling over 2,000 units. Xpeng and Leapmotor sold over 1,000 and nearly 900 vehicles, respectively. These increases indicate the increasing competitiveness of Chinese brands in Europe.
Overall Market Trends
Despite a 3% decline in total car sales across the European markets included in the survey, BEV registrations went up by 25% in February. This suggests that there is a robust and rising demand for electric cars even under more challenging overall market conditions.
The shifting dynamics within the European EV market suggest that established players and newcomers are increasingly challenging Tesla’s dominance, offering consumers a broader range of electric car options.
