Volkswagen Tops Tesla in Non-China Markets in January

Strong Sales of Key Models... 82,000 Units Sold
Hyundai Motor Group Ranks Third with 37,000 Units

Electric vehicle company Tesla saw a sharp decline in sales within Europe, resulting in losing its global market lead, excluding China, to Germany's Volkswagen Group as of January.

According to SNE Research's report released on the 10th, when examining the number of electric vehicle sales by global groups excluding the Chinese market, Volkswagen Group recorded sales of 82,000 units, a 68.5% increase compared to the previous year, overtaking Tesla to claim first place. The strong sales of key models such as the ID.3, ID.4, and ID.7 drove this growth rate.

Tesla's sales of its main models, the Model 3 and Model Y, decreased, totaling 57,000 units, down 14.7% compared to the same period last year. In particular, sales in Europe fell by 45.9% year-on-year, and in North America by 2.1%, showing a weak trend in major markets. Tesla is aiming to use this year as a turning point by launching a new affordable electric vehicle within the first half of the year to boost sales.

In third place is Hyundai Motor Group, which sold approximately 37,000 units, marking an 8.4% growth compared to the same period last year. Its key models, the Ioniq 5 and EV6, saw improved marketability through partial updates this year, driving a recovery in sales. Kia's EV3 and EV9 are also continuing to expand sales in the global market.

Notably, Hyundai Motor Group is showing strength in the North American market by surpassing electric vehicle deliveries from Stellantis, Ford, and GM. At the recent '2025 Kia EV Day' held in Spain, Kia unveiled the compact electrified sedan EV4 and the small electric SUV concept car EV2 for the first time worldwide, demonstrating its commitment to popularizing electric vehicles.

Europe, which experienced a decline last year due to reduced electric vehicle demand, showed a recovery with a 20.5% increase compared to the previous year. A major factor is the tightening of environmental regulations within Europe. The electric vehicle lineup is rapidly expanding, especially focusing on small electric cars, and manufacturers are launching new models accordingly. Renault released the small hatchback 'R5,' Stellantis promoted the 'e-C3,' Kia the 'EV3,' and Hyundai the 'Casper Electric' to strengthen their presence in the European market.

The North American market also grew by 10.9%, capturing a 10.5% share of the global market. However, there is potential for increased market uncertainty as the Donald Trump administration is considering abolishing mandatory electric vehicle sales targets, reducing electric vehicle subsidies, and imposing tariffs on battery raw materials.

The Asia (excluding China) market grew by 9.2%, recording a 13.5% share of the global market. Although major countries such as South Korea, Japan, and India are expanding their electric vehicle markets, the relatively slower growth is analyzed to be influenced by differences in electric vehicle promotion policies among countries and the strong presence of internal combustion engine and hybrid vehicles.

An SNE Research official explained, "Europe is undergoing a full-scale market restructuring centered on electric vehicles due to strengthened carbon emission regulations," adding, "In North America, while the expansion of electric vehicle adoption continues under the Inflation Reduction Act (IRA), the possibility of policy changes under a second Trump administration is increasing market uncertainty."