Polestar 2 price hike possible off back of China increase

A price rise could be on the cards for the Polestar 2. The China-made Polestar 2 is a top best-selling EV in Australia since its launch in our market late last year.

But news from China this week says the prices for the brand’s electric fastback will increase by up to 30,800 RMB or $A6,600.

According to Polestar in China, these price increases have been due to sharp rises in raw materials. We take a deeper dive into these price rises and look into whether they are likely to impact new Australian Polestar 2 customers.

Raw material costs behind $A6,600 Polestar 2 price increase

Polestar in China has indicated that in October 2022, it will increase the prices of its base single motor model Polestar 2 by up to $A6,600. That’s according to reports by cnevpost which state that the price of this model has increased from 269,000 RMB to 299,800 RMB.

The main driver behind these sharp price increases is soaring upstream costs caused by energy, inflation and supply chains.

For example, Investor Intel notes that lithium prices have skyrocketed tenfold. This is based on lithium hydroxide and carbonate values increasing from US$7,000/tonne to US$70,000/tonne since 2020.

What does this mean for Australian drivers?

From early indications, it seems that the prices to produce Polestar 2s may be on the rise which would mean that the costs would need to be passed on to new customers.

The last price increases we saw from Polestar in Australia were about $4,000 back in April. The price increase also came with a few upgrades. Since then Polestar is now a public company after floating on the NASDAQ back in June.

It’s unlikely that similar upgrades will be offered with any future price increases in our local market. That’s because the global supply chain and material costs seem much higher this time around.

The cost of everyday goods including fuel is on the rise, which is affecting global supply chains and transport of goods. It’s also worth noting that Polestar is not the only EV brand facing this. 

New EV customers can expect to see prices of EVs rise in the coming months. On the other hand, the used EV market has started to get healthier, which is good for those looking to make the switch to an EV without having to wait.