Volkswagen Overtakes Tesla in Global EV Sales Outside China
Electric vehicles are growing fast around the world. However, surprisingly, the global EV race is no longer led by only one company. In 2025, Volkswagen Group moved ahead of Tesla in battery-electric vehicle sales outside China, marking an important shift in the electric car market.
This clearly indicates that competition in the global EV market is becoming increasingly intense and more evenly distributed across different regions.
Volkswagen’s Strong Performance in 2025
Volkswagen’s popularity is mainly driven by its wide range of electric models and strong demand in Europe and parts of North America. According to recent industry findings, Volkswagen Group delivered around 37,4000 EVs outside China in the first quarter of 2025, showing great sales and massive growth compared to 2024.
Unlike brands that focus entirely on one or two models, Volkswagen offers EVs across multiple price ranges and segments. Popular models such as the VW ID.4, ID.7, Audi Q4 e-tron, Audi Q6 e-tron, and Skoda Enyaq have helped the group reach more customers. This variety and diverse option has made Volkswagen more competitive in different markets.
Overall, the company reported strong global growth in all-electric deliveries during 2025, supported by steady production and better availability.
Tesla Faces Slower Growth
Tesla remains a key player in the EV industry, but showed relatively less growth in 2025. The company reported lower global deliveries compared to the previous year, marking a second straight annual decline.
One of the main reasons was the change in government policies. In the United States, the expiration of the federal EV credit in 2025 reduced demand for electric vehicles, especially higher-priced models.
Additionally, the increased competition from both traditional automakers and new EV brands also added pressure. While Tesla continues to lead in technology and brand recognition, the market around it is becoming more crowded.
Other Automakers Are Gaining Ground
Volkswagen isn’t alone here; Hyundai Motor Group has also shown steady EV growth, led by models like the Ioniq 5 and Kia EV series. These brands are prioritizing affordability, design and practicality. That’s why they are catching everyone’s attention and gaining massive recognition.
At the same time, China remains the largest EV market globally, dominated by local brands such as BYD and Geely. However, Volkswagen’s lead outside China highlights how regional strategies matter.
Key Takeaway
The global EV market is entering a new phase. Volkswagen’s success shows that model variety, regional focus, and supply strength now matter more than ever.
Tesla’s slowdown signals that the competition is intensifying and no single brand can be a forever favorite or dominate forever.