Volkswagen overtakes Tesla in global EV sales outside China

Friday 09 January 2026 - 15:20

By: Dakir Madiha

Volkswagen overtakes Tesla in global EV sales outside China

Volkswagen Group has surpassed Tesla to claim the top spot in worldwide electric vehicle sales excluding China through November 2025, signaling a notable shift in the competitive landscape as the U.S. electric car pioneer grapples with its second straight year of declining deliveries.

Data released on January 9 by market research firm SNE Research shows Volkswagen selling 1.133 million electric vehicles from January to November, a robust 60.3% increase from the prior year. Tesla, by contrast, delivered 927,000 units, down 8.3% year-over-year. The overall market for electric vehicles outside China reached about 6.853 million units in that period, up 26.4% from 2024.

Tesla's flagship models have lost momentum amid softening demand. The Model Y, once Europe's best-selling electric vehicle, saw sales drop 4.8%, while the Model 3 fell 7.5%. Premium offerings fared worse, with the Model S plunging 55.2% and the Model X declining 36.1%, amid intensifying rivalry in the luxury segment.

This sales slump marks a dramatic turnaround for Tesla, which also ceded its position as the global leader in electric vehicles to China's BYD for the first time in 2025. Tesla's fourth-quarter deliveries totaled 418,227 vehicles, missing analyst expectations, partly due to the end of the U.S. federal $7,500 tax credit for electric vehicles in late September.

Volkswagen's surge stems from strong performances by models on its MEB platform, such as the ID.4, ID.7, and Škoda Enyaq, particularly in Europe. The rollout of new vehicles on the PPE platform—including the Audi A6 e-tron, Q6 e-tron, and Porsche Macan Electric—has further boosted the German automaker's momentum.

Regional divides marked the global electric vehicle market outside China. Europe rebounded sharply with 3.745 million units sold, a 32.8% annual rise that accounted for 54.6% of the total. North America, however, stagnated at 1.651 million units, up just 0.3%.

"The decline clearly shows insufficient demand for Standard variants meant to drive sales after the tax credit expired," said Stephanie Valdez Streaty, director of industry analysis at Cox Automotive.

Hyundai Motor Group held third place with around 566,000 units, up 12.5% from last year. The IONIQ 5 and Kia EV3 fueled growth in battery electric vehicles, while newer models like the Hyundai Casper (Inster) EV, EV5, and Creta Electric garnered positive responses in key markets. In the U.S., the IONIQ 5 sold 47,039 units in 2025, up 6% overall despite a 58% fourth-quarter drop tied to the tax credit's end.