Parent company Volvo recently refused to provide financial support to the “star” brand, but Polestar management remains optimistic.
The Chinese holding Geely bought the Swedish company Volvo Cars in 2010, and in 2015 the previously independent tuning studio Polestar became part of Volvo. A couple of years later, this division was turned into a separate electric vehicle company. Like many other electric vehicle companies, the brand named after the North Star has seen a slowdown in customer demand for green transportation.
Thus, at the end of 2023, dealers of the Polestar brand sold 54.6 thousand electric vehicles worldwide, this result is 6% more than the previous year, but it never reached the level of 60 thousand units declared by the manufacturer. Previously, it was assumed that in 2025 the number of Polestar electric vehicles sold per year would be 290 thousand units, but given the market situation, it is not a fact that the “star” brand will succeed.
Early last month it became known that parent company Volvo Cars would no longer invest in Polestar as it intended to focus on its own development. It is known that now the owner, the Chinese holding Geely, is directly responsible for financing brand projects. However, Polestar management remains optimistic: the company views automakers’ doubts about the electric future due to the demand crisis as an opportunity to be among the leaders in the green transport market.
Pictured: Polestar 4 interior
The Telegraph reports about Polestar’s plans with reference to the head of the Swedish brand, Thomas Ingenlath. He noted that some companies that previously announced plans to phase out cars with internal combustion engines are now reviewing their strategies and have stated that they intend to continue to produce and update their models with internal combustion engines in the coming years. Let us remind you that the list of such companies includes, for example, Mercedes-Benz and Renault.
In the photo: Polestar 3
According to Thomas Ingenlath, these manufacturers, who want to wait for now and not invest in the development of electric motors, in innovations in traction batteries and software, “are driving themselves into a trap.” He added that Polestar will still continue to develop electric vehicles and is ready to fill the “vacuum” that will remain if the interest of “traditional automakers” in the “green” segment declines. “This is an incredible opportunity for Polestar as there really aren’t many competitors in this premium electric vehicle sector,” added the brand boss.
Thomas Ingenlath's optimism is probably supported, among other things, by the organization of production of electric vehicles in South Korea and in the States (this means that the company will be able to bypass the protective measures that the United States and Europe are preparing for cars produced in Chinese factories). By the way, Polestar recently received financial assistance in the amount of $1 billion from a group of banks, which is expected to allow the company to stay afloat in the current conditions of slowing demand for electric cars.
Meanwhile, some future demand for the model turned out to be higher than expected: at the end of last fall it became known that due to increased interest, the brand intends not to limit the production of the Polestar 6 roadster. The start of production is scheduled for 2026.