Polestar will launch a next-generation sedan in 2027 to replace the Polestar 2, its volume seller since 2020. The model currently accounts for 60% of the Gothenburg-based brand's European deliveries.
The sedan competes in the premium midsize EV segment against BMW's i4 and Tesla's Model 3. European sales in this category grew 23% year-over-year in 2025, with Mercedes-Benz and Audi launching new models in 2026.
Polestar faces competition from multiple fronts. German luxury brands are accelerating EV rollouts while Chinese manufacturers including BYD and Nio expand into Europe and North America. The Swedish-Chinese brand shares EV platforms with Volvo through parent company Geely's investments.
The 2027 timeline allows integration of next-generation battery technology. European battery production capacity is projected to triple between 2024 and 2027, potentially reducing costs for manufacturers sourcing cells locally rather than importing from Asia.
Sedan demand has weakened globally compared to SUVs, but premium electric sedans maintain strong sales in Nordic markets and Germany. The segment shows particular strength in China, where Polestar manufactures vehicles and competes against domestic brands like Xpeng and Li Auto.
The new sedan will showcase design direction established by the Polestar 3 SUV and Polestar 4. The brand differentiates from Volvo through sportier positioning and minimalist Scandinavian aesthetics targeting global luxury buyers.
The current Polestar 2 starts at €48,900 in Germany, positioning between mainstream EVs and top-tier luxury models. Whether the successor maintains this pricing or shifts upmarket will determine its competitive stance across Europe, North America and Asia-Pacific markets. Specifications and exact pricing remain undisclosed.