Feb 5 (Reuters) - Volkswagen VOWG.DE overtook Tesla TSLA.O in sales of fully-electric cars in Europe in 2025, data from JATO Dynamics showed on Thursday, another setback for the U.S. automaker after China's BYD 002594.SZ dethroned it as the world's top EV maker last year.

JATO said sales of Volkswagen brand battery electric vehicles (BEVs) in Europe rose 56% last year versus 2024 led by strong sales of its new ID.7.

Registrations of Tesla cars, on the other hand, dropped 27% in the same period.

Volkswagen sold 274,278 BEVs in Europe last year while Tesla sold 236,357, according to JATO data.

Tesla's small, ageing car lineup faces tough competition in Europe from both traditional European automakers and a rising number of Chinese rivals. The company also faced a consumer backlash in Europe over CEO Elon Musk's backing of far-right parties on the continent.

EVs made a "significant step forward" in Europe in 2025, JATO Dynamics said, with fully-electric car registrations jumping 29% compared to the previous year.

Overall cars registrations grew by just 2.3% in 2025, the data showed.

The report included data from 28 European countries, including non-EU members Norway, Switzerland and Britain, but excluding Bulgaria and Malta.

(Reporting by Javi West Larrañaga; editing by Nick Carey)

((Javier.West@thomsonreuters.com; +34 918 35 61 12;))