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Volkswagen Leads the European Market in 2025 with a 10.7% Increase Driven by Hybrid and Electric Cars. Tesla Plummets.
Volkswagen Soars and Dominates European Market with the Rise of Hybrid and Electric Cars
The automotive market in Europe experienced a historic September in 2025. According to ACEA, sales rose 10.7% and reached 1.23 million units, with Volkswagen leading the surge thanks to the success of hybrid and electric cars.
Volkswagen consolidated its leadership, driven by the advancement of hybrid and electric cars, while Tesla lost ground on the continent.
The growth was fueled by strong demand for electrified models, which now account for nearly half of the sales in the region. This movement marks a definitive turning point in consumer behavior and the focus of European automakers.
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Hybrid and Electric Cars Gain Ground and Transform the Market
Plug-in hybrid cars saw the biggest jump during the period, with an increase of 62.1% compared to 2024, reaching a 10.6% market share. Meanwhile, full and mild hybrids advanced to 35.1%, reinforcing the trend of electrification.
At the same time, pure electric vehicles reached 21% of sales, particularly in Germany and the United Kingdom, which grew 31.9% and 29.1%, respectively. This expansion is directly linked to improved charging infrastructure and the increase in the availability of competitive models — from both traditional automakers and the Chinese, who are rapidly gaining strength.
Traditional Fuels Lose Ground in Europe
While electrified vehicles advance, gasoline and diesel cars are consistently declining. In September, gasoline vehicles represented only 24.4% of sales, down from 29.4% the previous year. Diesel fell to 6.3%, confirming its historical decline.
European consumers are migrating to more economical and sustainable alternatives, such as hybrid cars and electric cars, in addition to options powered by natural gas and LPG, which now account for 2.3% of the market. Countries in Central and Eastern Europe, such as Czech Republic, Romania, and Hungary, are leading this movement, driven by the cost-effectiveness of the new models.
Volkswagen Maintains Leadership with Strong Performance in Europe
Volkswagen remains on top with 317,432 units sold in September and 25.7% market share, growing 9.7% compared to 2024. The brands Cupra and Skoda performed exceptionally well, reinforcing the group’s dominance.
Stellantis came in second place, with 165,457 units and an increase of 11.5%, driven by the success of Alfa Romeo, Citroën, and Fiat. Close behind, the Renault Group recorded 115,830 units sold, up 15.2%, boosted by the popularity of Dacia.
Chinese Automakers Advance, and Tesla Loses Strength
Chinese automakers continue to gain ground in the European market. BYD saw impressive growth of 398%, while SAIC Motor, responsible for the MG brand, increased 75.5% in sales. Both are consolidating their presence among the leaders of electric and hybrid cars on the continent.
On the other hand, Tesla recorded a decline of 10.5%, dropping to ninth place in the ranking. The brand faces strong local competition and the impact of declining global sales. Ford, Mazda, and Jaguar Land Rover also experienced contraction, with the latter down 36.8% amid a broad internal restructuring.
Europe Accelerates Towards Total Electrification
With almost half of sales consisting of hybrid and electric cars, Europe confirms an irreversible energy transition. Technological advancement, combined with cost reductions and support from environmental policies, creates a favorable environment for Volkswagen and other giants to solidify their plans for total electrification.
Meanwhile, automakers that take too long to adapt may fall behind. Volkswagen’s leadership shows that the strategy of investing in innovation, efficiency, and sustainability is shaping the future of European mobility.
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