Europe EV Sales Report — King Volkswagen Rules in a Fast Growing (+34% YoY) EV Market

Last Updated on: 2nd July 2025, 09:30 pm

EVs are picking up in Europe, with some 305,000 plugin vehicles being registered in Europe in May. That’s up 34% year over year (YoY), its fastest growth rate since August 2023.

The 2025 growth rate is also accelerating, now at +24% YoY, or 1.4 million units, which means that after the so-so year of 2024, Europe’s EV market is back on track, despite Tesla’s woes (-31% YoY in May).

This is a particularly positive sign when considering that the overall market (currently at ~5.6 million units YTD) is stagnant this year (2% growth in May, 0% YTD).

Interestingly, while BEVs seem stuck at twenty-something growth rates, growing 28% YoY in May to 195,000 units, PHEVs are the ones pushing the market upwards, jumping 48% YoY in May. That’s PHEVs’ highest growth rate in over three years. They were spearheaded by the #3 BYD Seal U PHEV (aka euro-spec BYD Song PHEV), while the two automotive juggernauts Volkswagen and Toyota also helped things along thanks to the #12 VW Tiguan PHEV and #14 Toyota C-HR PHEV, respectively. PHEVs scored close to 110,000 sales in May, and their YTD numbers are now up 18% to 478,000 units.

As such, May saw the plugin vehicle share of the overall European auto market grow to 28% (18% full electrics/BEVs), pulling the year-to-date numbers up by one percent, now at 26% (17% for BEVs).

Considering the previous numbers, while BEVs should stay on a 20-something percent growth rate in the near future, it could be the case that, as more Chinese PHEVs land and Volkswagen Group ramps up its portfolio of new PHEVs, plugin hybrids could witness a surge in sales in the near future, allowing them to become a new growth engine for plugins.

Finally, while both BEVs and PHEVs were the fastest growing powertrains in May, looking at the sales breakdown between the remaining powertrains, there is the usual steep fall of diesel and petrol sales. The former is down 28% YoY to 8% share now, and the latter is dropping by 20% YoY, with their share falling to 28%.

The real news is that plugless hybrids are starting to lose steam charge, with HEV sales growing 14% YoY in May, less than both BEVs and PHEVs. Their market share was at 34% in May.

Will this slowdown mean that we will see Peak HEV sometime in 2026?

Anyway, as it stands, 62% of all car sales in Europe in May had some kind of electrification.

With these numbers in mind, one can say that diesel sales should effectively be dead in about three years time, while petrol should share the same fate a few years later (2031? 2032?), which will mean that by 2032, the whole European market will be at least partially electrified.

But let’s get back to May’s sales. The big highlight this month was the BYD Seal U (Euro-spec BYD Song) winning its first European podium, thanks to a record 7,135 sales. Here’s a more detailed analysis on the top 5 EVs this month:

#1 Tesla Model Y — Tesla’s crossover won Best Seller status in May, thanks to 10,630 registrations. This is a 6% drop over its sales in May 2024. With the German-made EV profiting from its recent refresh, the crossover is looking to reach its sales levels of 2023 and 2024, or at least get close. At least, considering all the hubris around the Texan brand, a 6% drop is not that bad, especially when comparing to the Tesla Model 3, which saw its sales nosedive by more than 50% in the same period…. Basically, Tesla is still floating thanks to the Model Y.

#2 Skoda Elroq — The recently introduced Elroq scored another record performance, 9,412 registrations in May. Will we see it go north of the 10,000-unit mark in June? Although not as spacious as its bigger sibling, the Enyaq, it compensates for that with a competitive price, starting at 34,000 euros, which makes it one of the cheapest compact crossovers on the market, Chinese included. Could this be the new value-for-money king? This great performance allowed Skoda to score close to 15,000 BEVs in May, a great result for the Czech brand, which meant that Skoda outsold Tesla in May…. Not bad, huh?

#3 BYD Seal U (BEV+PHEV) — BYD’s star player delivered a record 7,135 units (883 of them being of the BEV variety), providing the model (and the OEM) with its first podium presence in Europe. While the Seal U, the euro-spec version of the veteran Song, isn’t class-leading specs-wise, it compensates for that with competitive pricing, which is especially appealing in the PHEV version that starts just below 40,000 euros, a killer price for a midsize SUV. Just for an idea, the value-for-money minded Skoda Kodiaq midsize SUV starts at 45,000 euros, with a 1.5 MHEV engine and 150 hp, while the cheapest Seal U PHEV costs 5,000 euros less, is more powerful, has a combined power of 217 hp, AND, as a cherry on top, still offers 80 km electric WLTP range. Not bad, eh? But more on the Chinese PHEV price advantages is included in the next article….

#4 Volkswagen ID.4 — The compact crossover won another top 5 presence in May, with the MEB-platform model scoring 6,923 deliveries. This represented a 15% improvement over the same month last year. With improved specs and lower prices (and the small detail that Volkswagen Group needs to sell more BEVs to keep up with the EU’s CO2 rules…), the German crossover is experiencing a second youth. While not the EV enthusiasts’ choice, the ID.4 has enough going for it to attract a wide audience.

#5 VW ID.7 — The electric Volkswagen Passat scored 6,664 registrations in May. That represented exponential growth YoY, with the mid-to-large German model now officially becoming the new company-car darling in Europe. And one can see why — besides all the tangible strong points, like above average interior space, wagon availability, and long range (up to 702 km/436 mi WLTP), there are also a couple of intangibles helping. Those include the familiar badge and predictable residual value policies, and the fact that it is coming from a local brand, intangibles that in 2025 count significantly for that segment of buyers.

Outside the top 5, the highlight comes from Audi, which saw not one but two models reach record scores in May, with the #8 Q6 e-tron midsize SUV getting 5,359 registrations in May while in the same period the full size A6 e-tron made a top 20 presence, in #18, thanks to 3,581 registrations. That also crowned it as the undisputed new leader of the full size category, ahead of models like the BMW i5 and Volvo XC90 PHEV.

But it wasn’t all roses for Audi, as its compact EV, the Q4 e-tron, suffered from a 40% drop, ending the month in #15 with fewer than 4,000 registrations. Still, with seemingly many of the prospective Q4 clients going for the bigger (and more expensive/profitable) Q6, the German make can’t really complain, can it?

In the PHEV field, we are witnessing a generational change. While the Volvo XC60 PHEV and Ford Kuga PHEV were the longstanding sales champions, a new generation is taking over. Not only did the BYD Seal U become the best selling PHEV, but the new VW Tiguan PHEV is surging (#12 with 4,634 sales), profiting from a new generation and improved specs, and the Toyota C-HR PHEV (#14 with a record 4,172 sales) is profiting from an apparent change of heart from the Japanese carmaker (they seem to have discovered that If you build it, they will come). Expect more changes to this category as new models show up.

Another conversation topic is the somewhat disappointing performance of the Renault 5, only in 9th with 5,294 registrations. Sure, it was still enough to beat the B-Segment/Subcompact competition, but … we expected more.

Outside the top 20, there wasn’t that much to mention. One exception was the ramp-up of the bug-eyed Hyundai Inster (3,192 units) — expect it to join the table soon. Also, the BYD Dolphin Surf, aka Euro-spec BYD Seagull, has just landed on European shores with a discreet 724 registrations. Expect volumes to rise significantly in the following months, with the question being: Where will the demand ceiling be for the littlest of BYDs? Will it be top 5 material?

Looking at the 2025 ranking, there were plenty of changes, with the Volkswagen Group once again benefitting the most from them:

• The VW ID.7 jumped two positions, to 3rd, and now has a realistic chance to sustain June’s Tesla Model 3 delivery peak, now some 3,000 units behind, and effectively become the best selling midsize car on the table, all while ending the first half of the year on the podium.
• Its sibling, the VW ID.3, was also up two spots, in this case to 5th. There were therefore three Volkswagens in the top 5. Will the ID.3 be able to surpass the Renault 5 next month?
• Finally, the new Skoda Elroq is surging, having jumped 7 spots last month to #12. With a top 10 presence a certainty in June, one wonders where the Czech EV will stop. Maybe a top 5 spot by the end of the year?

Another significant model on the rise is the BYD Seal U, with the SUV jumping to 9th in May. The Chinese model will probably rise a couple more positions in the next few months.

The remaining changes allowed the Kia EV3 to climb one position, to 7th, while at the bottom of the table, we have a new model joining, with the Toyota C-HR PHEV replacing the Cupra Born and joining the table in #19.

Will the Japanese crossover hold steady on the table? Well, it depends on how committed the Japanese make is to this version, not only regarding production, but also regarding pricing, because Chinese PHEVs are becoming a bigger threat to established plugin hybrids than Chinese BEVs…. But more on this is coming in the next article.

Looking at the plugin auto brand ranking, the title could be Volkswagen Group wins, everyone else loses.

Looking closely at the month-on-month evolution, while Volkswagen continued its never ending rise and rise (11.5% in May vs. 11.2% in April), everyone else in the top 5 lost share.

This even allowed for Audi (5.2%) to surpass Tesla (5.2%, down 0.2% compared to April) and kick the Texan make from the table.

This is an end of an era in the European plugin market. After three years of full Tesla domination, there are new brands calling the shots.

Sure, Tesla will recover the 5th position in June — after all, only 400 units separate these two brands — and it could even reach 4th if all goes well, but … we are talking about the trophy holder. Tesla’s 2024 title was its 3rd in a row. And now it is fighting for a spot in the top 5….

Below the top 5, the fast growing #7 Skoda rose from 4.7% in April to its current 5% share. The Czech brand is probably the greatest threat to Tesla’s standing on the table, and also a welcome addition to the table, as Volkswagen is the single mainstream brand in the top 5, followed by four premium makes.

Having Skoda on the best sellers table will be a good sign of EVs going mainstream. Fingers crossed….

A deserving mention also goes to BYD, which is already appearing on the radar with 4% share, a 0.2% increase over April.

Arranging things by automotive group, Volkswagen Group is firmly in the lead, having gained 0.5% share in May. It rose to 28.1% share, a market share that is comparable to BYD’s in China and Tesla’s in the USA. This is an important metric for the German conglomerate if it wants to stay relevant in a fully electrified global automotive market.

If you can’t win at home….

BMW Group (10.6%, down from 10.8% in April) remained in the runner-up position in May, while #3 Stellantis is still on its long hard road in hell (9.5% in May vs. 9.7% in April). With models like the Opel Frontera-e, Citroen e-C3 Aircross, and Fiat Grande Panda EV still in ramp-up mode, the OEM will need significant volumes from these new models if it wants to stop the sales bleed and keep its podium position.

Hyundai–Kia (8.1%) remained in 4th, while Geely (7.7%, down 0.1%) kept its 5th position.