Polestar has concluded the production of the Polestar 2 in Luqiao, China, after more than six years. The facility manufactured over 200,000 units of the electric fastback since operations began in March 2020. The company is currently directing customers in several European markets toward existing stock as it ceases to accept new configurable orders for the model.
The Polestar 2, which originated from the Volvo 40.2 concept, received its major technical update in 2024, including a shift to rear-wheel drive. A successor is scheduled for release in early 2027. While reports suggest the new vehicle will be a crossover, the company has not yet provided official details regarding its platform, body style, or manufacturing location.
The transition occurs during a period of corporate restructuring. In the first half of 2026, Polestar reported global sales of 30,423 vehicles, a 0.4 per cent increase, while revenue declined by approximately four per cent to $1.36 billion. The company has lowered its annual growth forecast to a low to mid-single-digit percentage range, citing the phase-out of the Polestar 2 and changes in its US operations.
Regulatory challenges in the US, specifically the Connected Vehicle Rule, will prevent Polestar from selling new vehicles there starting from the 2027 model year. Consequently, Europe now accounts for approximately 80 per cent of the brand's sales. Meanwhile, production of the Polestar 4 SUV began in Busan, South Korea, in the second quarter of 2026, with European deliveries expected to start in early 2027.
