Lockdowns in China reduce Polestar sales

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Polestar announced record sales for the first four months of 2022, but also cut its sales plan for 2022 due to slowing sales in China.

In the first four months of the year, vehicle sales more than doubled to around 13,600 and company orders more than tripled to nearly 23,000 from the same period in 2021.

During the period, Polestar increased its global presence to 23 markets, up from 19 at the end of 2021, putting the company on track to reach its goal of 30 total markets by the end of 2023. new markets in the Middle East and Europe will soon be joined by Spain and Portugal. Plans are underway to begin operations in Israel and Italy later in 2022.

Additionally, Polestar announced a global partnership with car rental company Hertz to supply 65,000 cars over the next five years.

Polestar also said it faces supply chain constraints that continue to challenge the entire automotive industry. Additionally, following the prolonged COVID-19 government lockdowns in China during the first half of 2022, Polestar has now announced a reduction in the number of customer vehicle sales it will be able to deliver in 2022 from 65,000 to about 50,000.

It says the reduction for 2022 is 100% attributable to lockdowns in China. Polestar, along with partners Volvo Cars and Geely, said it continues to actively manage these ongoing supply chain challenges, as it did in 2021 when the company delivered around 29,000 vehicles. Through the implementation of a rapid response plan, including the accelerated introduction of a second production shift at the factory, Polestar expects to recover some of the lost production it suffered later. within the year and remains confident that it will achieve its targeted sales volumes for 2023 through 2025.

“We promised growth and we are delivering on that promise,” said Thomas Ingenlath, CEO of Polestar.

“The fundamentals for electric car sales growth remain in place and the momentum is stronger than the uncertainties we are currently witnessing. that is 10 times more than what we sold in 2021”, continues Thomas Ingenlath.

“We believe our future growth will be further accelerated by our entry into the lucrative SUV market later this year with the world premiere in October of the long-awaited Polestar 3 electric SUV. The Polestar 3, which will be manufactured in the United States and China, will stand out from other SUV offerings and drive our strong growth trajectory to take us into our next phase.”

The SUV market is one of the highest growth and margin segments in the automotive industry, especially in the United States. Customers should be able to order the Polestar 3 on premiere day in October.

Polestar intends to list on Nasdaq in a proposed business combination with Gores Guggenheim, Inc., which is expected to close in the first half of 2022.

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