More affordable second-hand cars will be used to grow Polestar’s customer base
New showrooms will help to protect residual values of growing second-hand fleet
Polestar will significantly expand its UK retail presence in the next 18 months, both to prepare itself for two new models arriving, and to allow for a substantial push of used car sales to expand its customer base.
The firm currently has nine Spaces across the UK, all of which are based in shopping centres. But the imminent arrival of the Polestar 3 and 4 SUVs alongside the existing 2 will effectively triple its line-up, creating an opportunity to significantly grow sales.
“Launching two new cars brings new volume and expands our reach into new segments,” said Matt Galvin, Polestar’s new UK boss. “That bring a requirement for faster growth, which means we need to expand our retail footprint quite aggressively.”
Galvin said that Polestar will expand to a total of 17 retail outlets in the next 18 months, with the new sites a mixture of the current store-based concept and “Spaces Urban”, which will likely “utilise older dealership-type buildings that we’ll bring up to a Polestar identity and culture.”
Galvin said that retail expansion isn’t just focused on new car sales, but on growing its approved used offering. “Pre-owners cars are going to be a big consideration for us going forward, especially with the first pre-owned 2 now coming back from leasing companies,” he said.
“One of my key objectives is protecting residual values, so we’re making sure the Spaces we open have the capability to properly market pre-owned cars, and we’re working closely with leasing companies to ensure we can absorb the incoming volume and sell it the Polestar way.”
There have been concerns about both the residual value of used EVs and low demand for such models. Galvin admitted that Polestar “is not immune” from the challenges in the market, but said that “used Polestars provide a positive opportunity for our investors and customers. It provides a lower entry point into our brand, and then enables us to retain those customers in the future by walking them into our fantastic new products.
“We want to make sure as many people as possible drive our products and grow our car parc in the UK, and used cars are a great way to do that.”
