The latest iteration of the German carmaker's family sedan was voted a clear winner by the panel of 58 motoring journalists from 22 EU countries.
The win means that it is the third time in five years that Volkswagen has scooped one of the automotive world's most prestigious awards. In 2010 the VW Polo won, and in 2013 the seventh generation Golf did the double, winning both the European and the World Car of the Year.
The New Passat, which was officially unveiled in September 2014, is Volkswagen's most technically advanced mass produced car to date, offering the highest levels of creature comforts, in-car connectivity, active driver safety aids and efficient drive trains.
The hybrid version is capable of traveling for 50km on battery power alone and is capable of more than 1000km on a combination of traditional fuel and battery power.
With 360 points, the new Passat scored 112 more than the car that finished in second place, the Citroen C4 Cactus (248), which finished marginally ahead of the Mercedes-Benz C-Class which came third with 221 points.