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Polestar Slows Growth Amid EV Market Volatility
18 Feb
Summary
- Polestar expects a slowdown in delivery growth to low double digits this year.
- The company is accelerating model launches, planning four new models in three years.
- Parent Geely Holding Group has provided multiple cash injections to support Polestar.
Polestar Automotive Holding UK Plc anticipates a slowdown in its delivery growth for the current year, now projecting expansion in the low double-digit range. This adjustment reflects the volatile nature of the electric-vehicle market. The company previously forecasted annual growth of up to 35% over a three-year period.
Despite tempered delivery targets, Polestar is initiating its most extensive product offensive to date. This strategy includes accelerating model launches and expanding production capacity to compete more effectively across various market segments. Four new models are planned for release within the next three years, alongside an ongoing expansion of its retail network.
The manufacturer, which shares facilities with Volvo Car AB, has received crucial financial support through multiple cash injections from its parent, Zhejiang Geely Holding Group Co. CEO Michael Lohscheller has implemented cost-cutting measures and strategic shifts in response to slowing EV demand growth and geopolitical factors such as US tariffs.
Polestar plans to introduce a new variant of its Polestar 4 crossover later this year, combining estate and SUV features. Production of this derivative will occur in Busan, South Korea. A next-generation Polestar 2 sedan is slated for early 2027, with production in China, while the Polestar 7 compact premium SUV is expected in 2028.
Polestar aims to distinguish itself as a design-led, performance-oriented premium EV brand within Geely's portfolio. The upcoming Polestar 7 compact SUV will target a similar customer base as Volvo's anticipated fully-electric EX60 SUV. Sustainability is also highlighted by the company as a key differentiator in the automotive sector.
