Polestar to launch a European-built compact electric SUV

Last year, Polestar launched two new EVs in the Australian market, both of which were in the very popular SUV segment. Now the Swedish-based car maker has announced that it is planning to produce a new compact SUV model called the Polestar 7 in Europe.

At a webcast event overnight, the brand made the announcement, saying that the Polestar 7 will be a premium SUV and is targeting the fastest-growing segment of the market, helping the brand towards profitability in years to come.

Philipp Römers, Polestar Head of Design, says: “Polestar is known for its progressive design, with each car standing out and creating its own buzz – so too will Polestar 7. It is incredibly exciting to bring Polestar’s design ethos to a new segment. Polestar 7 will be everything our customers expect from us, both in terms of design and performance.”

The company also shared that it plans to produce the Polestar 7 in Europe, although it’s unclear at this stage if this model will be produced at other global Polestar plants located in the USA, South Korea and China.

By manufacturing in Europe, the Polestar 7 will not be subject to the European tariffs on Chinese-produced EVs, adding to the appeal of this premium electric SUV in that market.

On top of that, the Polestar also mentioned that its grand-tourer model, the 4-seater Polestar 5, will be released this year. 

This model will be based on an 800-Volt architecture, helping with great ultra-fast charging speeds, and will be built on Polestar’s in-house developed bonded-aluminium platform.

Polestar first arrived in Australia in 2022 with the launch of Polestar 2 sedan. Since then, the company has sold thousands of examples locally before launching the Polestar 3 and Polestar 4 electric SUVs in the second half of 2024.

Both these models have been adding to the brand’s sales in the last couple of months, helping with greater awareness of the brand’s lineup locally. Polestar 2 and 3 had 254 sales in 2024, and that’s expected to increase significantly in 2025.

Polestar 4 starts at $78,500 before on-roads, while the bigger, more luxurious Polestar 3 comes in at $118,420 for the Long-range single-motor variant. 

Getting back to the Polestar 7, it’s looking to be a best-seller for the brand in years to come and is likely to be similar in dimensions to Volvo’s EX30, which has seen great sales in our local market in 2024.

Adding Polestar’s Scandinavian design and performance to that segment, the Polestar 7 will bring many new customers to the brand, helping it grow across many parts of the world, including Australia, if and when it comes to our shores.