The carmaker has had a difficult start to 2024 after posting a significant drop in sales in the first quarter
April 25, 2024 at 7:55 am
- It seems increasingly likely that the European Commission will impose tariffs on electric vehicles made in China.
- Most of Polestar’s current vehicles are manufactured in its factories in Chengdu and Taizhou.
- The carmaker will soon begin building the Polestar 3 in South Carolina.
Polestar wants to build more electric vehicles outside of China because of the risk of electric vehicles made in China being hit with increased European tariffs. While Polestar was founded by Volvo and Geely, the Swedish manufacturer recently gave up its shares, meaning the electric vehicle maker is now primarily Chinese-owned.
The majority of Polestar vehicles sold worldwide are manufactured in Chengdu and Taizhou. However, the new South Carolina factory will soon begin building the Polestar 3 for the US and European markets and, according to company boss Thomas Ingenlath, the export of vehicles from this factory to the EU could be accelerated.
Read: The radical Polestar 7 EV will replace the 2 in 2027
When Ingenlath was recently asked about the automaker’s plans, he said the production cost calculations were “complex” and noted that “we’re actually in limbo there because of course we don’t know where they are.” [EU] The investigation is ongoing.” As a result, the company has accelerated its efforts to establish a solid global manufacturing presence.
In October, the European Commission began investigating Chinese-made electric vehicles to determine whether they have unfairly benefited from government subsidies that have helped them significantly undercut Western rivals. Although this investigation will not be completed until November, it is becoming increasingly likely that tariffs will be imposed on Chinese BEVs imported into Europe.
Ingenlath has previously described 2024 as a “transitional year” and its sales are off to a slow start. Around 7,200 vehicles were delivered worldwide in the first quarter of the year, a decrease of 40% compared to the same period in 2023. Still, Polestar expects deliveries to accelerate for the rest of the year thanks to the launch of the Polestar 3 and Polestar 4.
Speaking to Reuters, Ingenlath said the carmaker wanted to allocate 40% of its sales to Europe, another 30% to the US and the remaining 30% to the Asia-Pacific region.
