Tesla is losing ground in Europe, and buyers increasingly prefer hybrids — CleanTechnica report

The European electric vehicle market is undergoing a major transformation, and Tesla's position is weakening, according to a new report from CleanTechnica.

In June 2025, sales of electrified vehicles increased by 23% compared to the previous year and reached 361 thousand units. At the same time, the balance of power in the market is changing: pure electric vehicles (BEVs) grew by only 16%, while plug-in hybrids (PHEVs) showed growth of as much as 40%.

Among the successful examples is the BYD Seal U, a mid-size SUV in a PHEV version, which became a hit thanks to its price of less than €40,000, 217 hp and a range of 80 km on electric power. The Volkswagen Tiguan PHEV also attracts buyers with its more than 100 km electric range and fast charging.

Tesla remains a prominent player, but with problems. The Model Y holds the top spot with 24,073 registrations in June, but Model 3 sales fell 48% to just 10,807 units.

European manufacturers are actively responding to the challenges. The Skoda Elroq, a compact and more affordable "relative" of the Enyaq, received 9,825 registrations at a starting price of €34,000. The Renault 5, together with the sporty Alpine A290, achieved 7,788 sales. This proves that mass brands are able to offer competitive electric cars without harming other models.

After three years of dominance, Tesla has lost its title as the leader of the European EV market. Volkswagen has taken the top spot with a share of 11.2%, while Tesla has dropped to fourth place with 6.1%. BMW and Mercedes-Benz took second and third place, while BYD is rapidly expanding its presence, reaching 4.1%. Volkswagen Group leads the car companies with a 27.8% market share, while Stellantis lags behind.

The niche segment is also growing - MPV sales have almost doubled thanks to the Volkswagen ID.Buzz, indicating a maturity of the market and an expansion of choice beyond popular crossovers.