Tesla Model 3 tops Renault Zoe as Europe's best-selling EV; VW Golf slows but still No. 1 overall

The Tesla Model 3 was Europe’s top-selling electric car in 2021 as battery-powered vehicles emerged as a bright spot for an industry besieged by lockdowns and a shortage of semiconductors.

The Model 3 pushed the Renault Zoe off the top EV spot. The Model 3 also overtook some of the region's traditionally popular models such as the VW Tiguan and Peugeot 3008 SUVs for 17th place in the overall ranking, up from 41st in 2020, according to analytics firm JATO Dynamics.

Tesla's rise stood in contrast to a decline of traditional favorites such as the VW Golf, which posted the biggest market share drop but kept its long-held spot as Europe's best-selling car overall.

In September, the Model 3 was the first full-electric car to become Europe's best-selling car overall for the month, outperforming the Golf and other regular topsellers with internal combustion engines.

The VW ID3 full-electric compact hatchback, launched in 2020, failed to replicate Tesla's success, coming in 53rd in the ranking.

The overall market declined to 11.8 million vehicles, the lowest level since 1985.

"Crisis after crisis had a negative impact on demand and registrations in the market," said Felipe Munoz, an analyst at JATO.

"The ongoing uncertainty of the COVID-19 pandemic, alongside the prolonged semiconductor shortage created a perfect storm," Munoz said.

Automakers including VW and Stellantis are spending billions on rolling out a range of plug-in hybrid and battery-powered models, with consumers responding to generous subsidies to help cut emissions from the transport sector. JATO expects electrified cars to outsell diesel vehicles in 2022.

New challengers are emerging in the changing market. In 2021, Hyundai and Kia increased their market share in Europe by almost two percentage points to 8.6 percent due to their lineup of SUVs and electric models, JATO said.