Borrowing billions from Geely to survive! Polestar is preparing to turn things around with manufacturing in South Korea

NightAirdropper · 2026-02-27T05:41:04+00:00

Polestar Automotive expects losses of over 10 billion yuan in 2025. Despite record-high global sales, the contribution from the Chinese market is limited. To address the impact of tariffs, the company plans to shift some new car production to South Korea. Sales are expected to increase significantly in 2026, and the company will expand its sales network and launch new models.

NightAirdropper

2026-02-27 05:41:04

Abstract generation in progress

Fast Technology, February 26 — According to reports, Polestar’s total annual loss in 2025 will exceed 10 billion RMB. In the same year, the company secured approximately $800 million in funding through financing, loans, and other means from Li Shufu and Geely Holding Group.

Meanwhile, this luxury electric vehicle company, backed by Geely and with Volvo DNA, is preparing to shift some key new models to be produced in South Korea.

Polestar’s global sales in 2025 will surpass 60,000 units, setting a new record. However, the contribution from the Chinese market is minimal, with only 287 units of the two current models, Polestar 2 and Polestar 4, sold throughout the year. The company’s last direct-operated store in China has already been closed.

Due to international geopolitical tensions, exports of Chinese-made Polestar 2 to the U.S. face high tariffs, increasing the starting price by over $15,000. This is a key reason for the company’s move to produce in South Korea.

The South Korean factory in Busan, jointly owned by Renault and Geely, began exporting Polestar vehicles to North America in the third quarter of 2025. The Polestar 4 wagon, scheduled for delivery in Q4 2026, will be produced there.

In 2025, the Korean-made Polestar 4 contributed to a sales increase of over 500%, with nearly 3,000 units sold, making South Korea Polestar’s largest market in Asia.

Currently, over 80% of Polestar models are still produced in Chinese factories, with more than 60% of the brand’s sales coming from the Taizhou plant, which manufactures Polestar 2.

Leveraging China’s new energy vehicle supply chain, Polestar views South Korean manufacturing as a core strategy for expanding overseas markets. Its 2026 goal is to achieve low double-digit year-over-year sales growth and expand its sales network by 30%.

The company also plans to launch four new models, including a new generation Polestar 2, between 2026 and 2028.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

1 Likes