Volkswagen sold 231,600 battery electric vehicles in 2020, representing a 214 percent on-year increase to mount a challenge to Tesla.

According to Ralf Brandstätter, CEO of Volkswagen Passenger Cars, the company is on track to achieve its aim of becoming the market leader in battery electric vehicles.

Volkswagen sold 56,500 units of its most popular battery electric vehicle, the ID.3. It also sold 41,300 units of the compact e-Golf and 22,200 of the e-up! model.

Audi, Volkswagen's luxury brand, sold 47,300 e-tron SUV and sportback models. There were also 20,000 electric Porsche Taycans sold.

In Norway, where 54 percent of EVs were sold, VW overtook Tesla.

Volkswagen has said it plans to invest $43 billion in electric vehicles by 2025.

Sales of hybrid vehicles, which use both electricity and conventional fuels, also increased, with Volkswagen selling 190,500 hybrids last year, a 175 percent jump from 2019.