"Polestar Confident on Racing Circuit"
Polestar Gears Up for Growth in Germany and Beyond
Polestar, the sporty electric vehicle brand under Chinese Zhejiang Geely Holding, is making significant strides in its growth strategy, particularly in Germany. The company, which pays an 18.8% import tariff for its models imported from China, has managed to maintain its pricing without any increases to compensate for the tariffs.
In the first quarter of the current year, Polestar achieved a sales increase of over 35% and a market share of 1% in the electric vehicle market. This growth is expected to continue, with the company aiming for 2025 to be its strongest year yet.
Michael Lohscheller, the former Opel CEO and PSA board member, is the current CEO of Polestar. His German background is beneficial for the company's operations in the German market, where he has appointed Willem Baudeweijns as the Managing Director.
The new distribution strategy of Polestar involves transitioning from direct sales to an agency model. Six dealer groups, each with several support points and trading in Volvo vehicles, have been won for this new model.
Polestar's focus is on healthier growth and profitability instead of sales figures, a decision made consciously in 2024. Despite this, the Polestar 3 and Polestar 4 have significantly increased order intake since the fourth quarter of 2022. The Polestar 4 is currently sold out for certain configurations of the 2025 model year.
The new Polestar 5, a high-performance car with 800-volt architecture, will be launched in Germany at the beginning of next year. The Polestar 7, an electric compact SUV, will follow in the next year after the 2025 launch of the Polestar 5, and will be produced in Europe.
Polestar is also making moves in the energy sector. Polestar Energy is launched in various European markets, aiming to enter the energy trade in the future. The company is working on a bidirectional charging solution, with a compatible wall box offer soon to be available.
The success of Polestar in Germany is crucial for the company's growth strategy. The goal for Germany is to have 17 Polestar Spaces, with the first five opening in the first half of 2026.
Polestar's growth in Germany and beyond is not just about sales figures. Predictability in legislation, electric vehicle incentives, and energy prices is crucial for car manufacturers and customers, according to Polestar. The new federal government could help by ensuring predictability and stability in these areas.
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