BMW electric vehicles surpassed Tesla's sales in Europe during July, marking a decline in electric car sales overall.

In the ever-evolving world of automotive sales, July 2025 saw a mix of successes and challenges in the European electric vehicle (EV) market.

The Tesla Model 3 EV, which has been generating much hype, continues to make waves despite production issues. Despite its late arrival in Europe, the Model 3 EV has managed to secure the title of the best-selling electric car on the continent, with high-end models leading the way.

However, the Tesla dominance was not as pronounced as it once was. Volkswagen Group emerged as the top-selling manufacturer of electric cars in Europe, surpassing Tesla, thanks to a broader portfolio of models. The VW brands' success was particularly noticeable in July 2025, when considering all models beyond the top 10, with the Group surpassing Tesla despite the Model Y remaining the single top individual model.

The Skoda Elroq held the crown as the best-selling electric car in the UK and Europe in April, but the Volvo EX30 took the second spot in Europe in July, followed by the VW ID .4. Interestingly, only two BMW EVs, the iX1 and i4, made it into the top ten EV sales chart in Europe.

The SUV market share in Europe saw a significant increase in July, climbing to 54%, up by 6% compared to the previous year. The Dacia Sandero was the best-selling car in Europe overall, with the VW T-Roc and Toyota Yaris Cross leading in the SUV segment.

Despite the growth in the SUV market, the overall sales of cars in Europe increased by a modest 2% Year over Year (YoY) in July. However, the EV sales story was a different one, with a 6% decline YoY.

This decline can be attributed to a lack of clarity around EV incentives and future, along with concerns over the low residual values of EVs, according to Jato Dynamics. Felipe Munoz, Global Analyst at JATO Dynamics, stated that these factors are acting as barriers to EV adoption.

In a surprising turn of events, the Fisker Ocean EV is set to make its debut in the UK, with the company experiencing a more promising phase after its ups and downs. The Fisker Ocean EV aims to challenge established EVs like the Tesla Model Y and BMW iX3.

The EV market in Europe is witnessing a shift, with government incentives and big manufacturer discounts driving sales, despite a lack of interest from private buyers. In July, BMW sold more electric cars in Europe than Tesla, with BMW's combined electric sales edging out Tesla by a small margin of 308 cars when only considering the top 10 models. However, when including all other BMW EVs, BMW had a satisfying win in Europe's electric car sales.

As the landscape of the European automotive market continues to evolve, it will be interesting to see how these trends develop in the coming months. The Fisker Ocean EV's entry into the market and the continued success of the Tesla Model 3 EV are likely to shape the future of the EV market in Europe.

BMW electric vehicles surpassed Tesla's sales in Europe during July, marking a decline in electric car sales overall.