Polestar 7 coming in 2027 as European-built compact SUV

Polestar has announced that it will enter the compact SUV market in 2027 with the European-built Polestar 7.

Announcing its future strategy, the Swedish EV brand revealed bold plans for the next two years, including the new ‘baby’ Polestar, alongside the launch of the Polestar 5, a huge expansion of its dealer network and entry into new markets.

CEO Michael Lohscheller said he expected 2025 to be the strongest year in Polestar’s history and revealed that the brand was targeting sales growth of 30-35% for 2025 to 2027.

Polestar suffered a difficult 2024, reporting an 8% drop in sales and adjusted losses of $180 million but says it is targeting profitability in 2025 as it starts the first full year of sales of its expanded model range. It is also seeking to increase profits from selling carbon credits to other brands that fail to meet EU emissions limits or the UK’s ZEV mandate targets.

Orders for the Polestar 3 SUV and Polestar 4 coupe-SUV are expected to boost sales significantly throughout 2025 and later this year the Polestar 5 four-door GT will arrive.

That will be followed by the 6 roadster and the Polestar 7 compact SUV, which the brand previously indicated would enter production in 2027.

The Polestar 7 will join the world’s fastest growing and most profitable premium vehicle segment and is expected to go head-to-head with models such as the Mercedes EQA and BMW iX1. No technical details have been shared but Polestar sees itself as a performance brand, so the Polestar 7 could well be positioned as a sportier alternative to these rivals.

Philipp Römers, Polestar head of design, said: “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.”

While the current Polestar range is built across China, South Korea and the US, the Polestar 7 will be manufactured in Europe as part of the firm’s plans to broaden its global presence. The current range of Polestar cars are built on a variety of platforms from Volvo, Geely and Polestar itself, but the brand says it will gradually move to a single modular architecture for all models to reduce costs and complexity.

As part of its plans for the coming years, Polestar intends to expand its retail operation by 75% by 2027 and launch in France for the first time in 2025.

It is also predicting a ‘three-digit million-dollar’ profit from selling carbon credits to manufacturers struggling to hit new emissions targets coming into force from 2025.

Lohscheller commented: “We are building on the strong Polestar brand with design and performance at its core. But significant changes are needed to make this well-respected progressive brand a successful and viable business.

“We are speeding up our retail expansion and commercial transformation, whilst adjusting our future model line-up and significantly reducing our cost base. Both in terms of volumes and financials, we expect 2025 to be the strongest year in Polestar’s history.”