Polestar, the Sino-Swedish electric vehicle (EV) manufacturer, anticipates a slowdown in its Australian sales growth for 2026 after a remarkable 38.5% increase in 2025. Despite this expected moderation, the company remains confident in its long-term prospects, citing an expanding dealer network and growing brand recognition as key drivers.
2025 Performance: A Surge in Demand
Last year, Polestar sold 2,373 vehicles in Australia, fueled by demand for its newer SUV models – the Polestar 3 and Polestar 4. This surge contributed to a 36% increase in global sales for the Geely-owned brand.
The high growth rate was largely driven by individual customer purchases rather than bulk fleet sales or rental agreements, making it a sustainable trajectory for the company.
Growth Expectations for 2026
Polestar Australia Managing Director Scott Maynard emphasized that maintaining the same explosive growth rate in 2026 is unrealistic.
“While we expect continued growth in each quarter, we don’t anticipate replicating the 30-plus percent increase seen last year,” he stated. The company attributes the prior success to successful new model launches, network expansion, and increased representation across Australia.
Expansion and New Models
Polestar is actively expanding its retail footprint in Australia, with plans to open additional sites this year. This demonstrates both the company’s confidence in the Australian market and the investment from its retail partners.
The brand is also preparing to launch updates for its Polestar 2 liftback and introduce the Polestar 5, a new flagship electric performance sedan.
Financial Stability: Debt and Investment
Despite positive sales figures, Polestar carries significant debt – approximately US$5.5 billion (A$8.1 billion). Recently, the company closed its final research and development facility in the UK but received a US$600 million (A$885 million) loan from its parent company, Geely, alongside additional external investment.
This financial backing is intended to reassure customers and support continued operations.
“There’s a lot of good news coming out of the Polestar brand, which our customers should find reassuring.”
Polestar’s future success hinges on maintaining customer loyalty through sustainable growth, strategic retail expansion, and continued financial support from Geely. The company’s ability to navigate its debt while introducing compelling new models will determine its long-term viability in the competitive EV market.
