For anyone who’s spent time in Sweden, this probably won’t come as a shock: the Swedes still have a soft spot for Volvo. But what’s surprising this year is how far Tesla has fallen — and how fiercely the competition is heating up.
According to the latest figures from Mobility Sweden, Volvo remains the undisputed champion of Swedish car sales. The homegrown brand sold 48,961 passenger cars in 2025, comfortably holding its top position. Close behind, Volkswagen surged with 38,677 cars sold, a jump of more than 9,500 units from last year. It’s a strong comeback that shows VW isn’t content to sit quietly in second place.
Rounding out the top five are some familiar names:
Skoda and BMW continued to climb, while Audi’s numbers stayed mostly steady.
If Volvo is having a great year, Tesla is living a completely different story. Once the golden child of the EV world, Tesla’s Swedish sales plunged by 67% — from 21,894 cars in 2024 to just 7,252 in 2025. That drop sent the company tumbling from 5th place to 12th in the national rankings.
So, what went wrong?
Analysts point to a mix of factors: changing government incentives, tough new competition from Europe and Asia, and Tesla’s shifting prices that may have left some buyers hesitant. Even the hugely popular Model Y lost its dominance to newer arrivals like Volvo’s EX40 and Volkswagen’s ID.7 Tourer.
There’s a new frontrunner in the electric race — and it’s not Tesla.
For the first time ever, Volvo took the lead in fully electric car sales, moving 18,403 EVs in 2025. Volkswagen was close behind with 17,153, while Tesla slipped to fifth place. Other brands making big strides in the electric lane include Kia, Polestar, and BMW, each expanding their EV offerings.
And Volvo isn’t slowing down anytime soon. The company plans to launch a fully electric XC60 in 2026, a move that could push its lead even further.
Sweden’s shift toward electric vehicles is undeniable, but it’s unfolding in a uniquely Swedish way. Instead of blindly following Silicon Valley’s every move, consumers here are favoring cars that fit their own tastes — practical, safe, and increasingly electric.
Volvo’s success isn’t just about nostalgia. It’s about trust in a local brand that’s evolving with the times. Meanwhile, Tesla’s dramatic drop is a reminder that loyalty in the EV world can fade fast when rivals catch up in technology, design, and price.
The big question now: can Tesla regain its footing, or has Sweden’s car of the future officially gone homegrown?