Swedish-Chinese electric vehicle manufacturer Polestar has officially confirmed development of the all-new Polestar 7, a compact luxury electric SUV that will be manufactured in Europe rather than China to strategically avoid import tariffs and strengthen its market position.
Polestar 7: Europe-Built Compact Luxury EV
The upcoming Polestar 7 represents a significant expansion into the competitive compact luxury SUV segment, expected to launch in 2027 with design elements consistent with Polestar’s progressive aesthetic philosophy. Built on the proven Geely SEA platform architecture, the vehicle shares its foundation with the larger Polestar 4, Volvo EX30, Smart #3, and Zeekr X models.
Design Philosophy and Market Positioning
“Polestar is known for its progressive design, with each car standing out and creating its own buzz – so too will Polestar 7,” stated Phillipp Romers, Polestar’s new head of design. The vehicle will incorporate signature design cues from the existing Polestar 3 and 4 electric SUVs while establishing its own distinct identity in the compact luxury segment.
Production Strategy to Avoid Import Tariffs
The decision to manufacture the Polestar 7 in Europe reflects broader industry trends where manufacturers are establishing regional production facilities to mitigate tariff impacts and supply chain complexities. This strategic move positions Polestar advantageously in European markets while supporting Australia’s National Electric Vehicle Strategy goals for increased EV accessibility.
Strategic Market Expansion and Growth Targets
The Polestar 7 launch forms part of an ambitious strategic initiative targeting 30-35% retail sales volume growth from 2025 to 2027. CEO Michael Lohscheller emphasized the necessity of significant changes to transform the “well-respected progressive brand” into a “successful and viable business.”
Polestar’s expansion strategy includes increased exposure in Europe and North America, with France market entry planned for this year, followed by Eastern Europe, Asia, and Latin American markets from 2026 onwards.
Australian Market Context
Polestar Sales Performance Data (Australia)
| Year | Units Sold | Change | Entry Price (AUD) |
|---|---|---|---|
| 2023 | 2,447 | – | $65,900 |
| 2024 | 1,713 | -30% | $62,400 |
The Australian market presents both challenges and opportunities, with Polestar recording 1,713 vehicle sales across the 2, 3, and 4 model lines in 2024, representing a 30% decline from 2023. Price reductions throughout 2024 lowered the entry point to $62,400 before on-road costs for the base Polestar 2, aligning with government incentives supporting EV adoption.
Technical Specifications and Platform Details
While comprehensive powertrains, specifications, and pricing details remain undisclosed, Polestar confirmed a strategic transition to a single vehicle platform from the Polestar 7 onwards. This architectural consolidation may position the upcoming Polestar 5 as the sole model utilizing Polestar’s advanced bonded-aluminum platform.
Competitive Landscape
| Model | Type | Expected Launch | Platform |
|---|---|---|---|
| Polestar 7 | Compact Luxury SUV | 2027 | Geely SEA |
| BMW iX1/iX2 | Compact Luxury SUV | Available | BMW FAAR |
| Mercedes EQA | Compact Luxury SUV | Available | Mercedes EVA |
| Lexus UX300e | Compact Luxury SUV | Available | GA-C |
| Mini Countryman E | Compact Luxury SUV | Available | FAAR |
Advanced Technology Integration
The Polestar 5, featuring 800-volt battery technology and electric motors capable of delivering up to 650kW power and 900Nm torque, will debut alongside the Polestar 7 timeline, with order books opening in late 2025.
Under the Geely Auto conglomerate umbrella, which includes Volvo, Lotus, and Smart, Polestar continues positioning itself as a premium EV manufacturer focused on design excellence and performance innovation.
Frequently Asked Questions
Q: When will the Polestar 7 be available for purchase?
A: The Polestar 7 is expected to launch in 2027, with no specific release dates announced yet.
Q: Which vehicles share the same platform as the Polestar 7?
A: The Polestar 7 uses the Geely SEA platform, shared with Polestar 4, Volvo EX30, Smart #3, and Zeekr X.
Q: What are the main competitors for the Polestar 7?
A: Primary competitors include BMW iX1/iX2, Mercedes-Benz EQA, Lexus UX300e, and Mini Countryman E.
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