Electric Car Sales: Volkswagen Thanks Tesla

In the first quarter of 2025, the Volkswagen group doubled its electric car sales in Europe, taking advantage of the lack of interest in Tesla.

One person’s misfortune is another’s opportunity. This can largely summarize the performance of the Volkswagen group in the electric vehicle sector in Q1 2025. In Europe, the German group has simply doubled its sales!

Volkswagen Group delivered 2.13 million vehicles worldwide during the first three months of the year, a 1.4% increase compared to the same period in 2024. But what impresses most is the momentum around electric vehicles: deliveries of BEV vehicles surged by 59% to reach 216,800 units globally. The share of electric in the product mix increased from 6% to 10% in one year.

Tesla’s Downfall in the Background

The performance is particularly remarkable in Europe, where the group doubles its BEV deliveries (+113%) and now captures 26% market share, consolidating its sector leadership. This surge is driven by models like the Volkswagen ID.4/ID.5 (43,700 units), ID.3 (28,100), Audi Q4 e-tron (22,800), and Škoda Enyaq (20,200).

This rise of Volkswagen occurs as Tesla experiences a noticeable slowdown in its global sales, especially in Europe and China. The Californian automaker, once dominant, is losing ground amid the premiumization of traditional manufacturers and the multiplication of new, more affordable models.

In this context, Volkswagen positions itself as the leading European alternative, combining a broad product range, better industrial control, and proximity to local markets. Delays and uncertainties around Tesla’s lineup renewal provide a strategic opportunity that the German group skillfully exploits.

The overall picture remains positive across different regions of the world:

• In North America, deliveries increase by 4.4%, with a 6.2% growth in the United States.
• In South America, growth reaches 16.6%.
• In Europe, the historic core of the group, deliveries rise by 3.7%, with particularly strong performance in Germany (+5.5%).

China remains the main dark spot, with a 7.1% decline in deliveries amid fierce domestic competition and a price war. However, this decline was anticipated and is offset by performances on other continents.

• Volkswagen ID.4/ID.5 : 43,700 units
• Volkswagen ID.3 : 28,100 units
• Audi Q4 e-tron (including Sportback version): 22,800 units
• Škoda Enyaq (including coupe version): 20,200 units
• Volkswagen ID.7 (including Tourer version): 19,100 units
• Audi Q6 e-tron (including Sportback version): 16,000 units
• Porsche Macan : 14,200 units
• Volkswagen ID. Buzz (including Cargo version): 12,700 units
• CUPRA Born : 11,000 units
• CUPRA Tavascan : 7,600 units

Above all, Volkswagen’s strength lies in the repetition of an industrial model that was a key to its success during the combustion era: the same car is marketed under multiple brands. This helps lower development costs, and therefore thresholds for profitability.

In fact, prices have never been as low at Volkswagen where sales are driven by massive discounts. The right price ultimately?

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