- Volkswagen’s EV sales surged by over 100% in Europe, and it dominated the German market with seven of the top ten best-selling models.
- In China, Volkswagen’s EV sales dropped by 35%, while competition from local brands continues to rise.
- Volkswagen expects a recovery with new model releases and a strong showing at the Shanghai Auto Show in April.
Volkswagen Group reported on Wednesday, April 9, that its electric vehicle (EV) sales in Europe sharply rose in the first quarter of 2025 but experienced a significant decline in China.
In Europe, the company’s sales of battery-electric cars more than doubled compared to last year. Volkswagen models dominated the German market, taking seven of the ten best-selling EV spots, according to data from Germany’s KBA motor authority. The ID.3 and ID.4 led the charge.
Once the top EV seller in Germany, Tesla saw sales of its Model Y drop by nearly 70%. The Model Y fell from first to seventh in the rankings. Analysts attribute the decline to Elon Musk’s political controversies and Tesla’s ageing lineup.
Volkswagen’s total orders in Western Europe rose 29% year-on-year, including electric and combustion-engine vehicles. The increase follows rising demand across the continent, fueled by new emissions regulations and fresh EV models.
Data from the European Automobile Manufacturers’ Association shows strong growth in battery-electric car sales across Europe, even as total car sales declined. Experts link the rise to more challenging EU emissions targets and a wider selection of EV options.
Meanwhile, Volkswagen’s performance in China lagged. EV sales in the region fell by over 35%, and total sales dropped by 7.1%. China remains the world’s largest EV market, but intense competition from domestic brands has hurt foreign automakers.
New, EV-only Chinese startups continue to seize market share with low-cost, tech-heavy vehicles. Volkswagen, Mercedes-Benz, and Porsche all reported declining sales in the region.
Volkswagen expects improvement later this year as it rolls out updated models. The company plans to release new versions of the ID.3 and ID.4X in the coming months. Volkswagen also looks to significantly impact the Shanghai Auto Show in April.
At the event, Volkswagen will unveil the first production model under the new Audi EV brand. The company will also showcase three upcoming electric models developed through partnerships with Chinese automakers FAW, SAIC, and JAC.
The SAIC model will be a range-extended SUV. It will feature a small petrol engine that charges the battery, addressing concerns over range anxiety among potential buyers.
In the U.S., Volkswagen’s sales rose 6.2% in the first quarter. Analysts suggest the increase may result from customers purchasing ahead of new tariffs. The U.S. plans to impose a 25% duty on car imports, affecting several VW models.
Volkswagen faces risks from the trade conflict. The company manufactures around two-thirds of its VW-branded cars in Mexico. It also imports luxury models like Porsche, Audi, and Lamborghini from Europe, leaving them vulnerable to higher tariffs.
The data highlights Volkswagen’s growing strength in Europe and its struggles in China. While European demand rises due to new climate policies and fresh EV options, the Chinese market remains challenging because of rapid innovation and fierce local competition.