Polestar has confirmed plans to add a premium compact SUV to its electric car range, squaring up to the Porsche Macan.

Polestar says it expects 2025 to be the strongest year in its history

Expected to arrive in 2027, the new model will f0llow the existing Polestar 2, 3 and 4, along with the 5 GT due this year and the 6 roadster arriving in 2026.

The brand’s seventh car – as denoted by its chronological model numbering – the 7 will enter the world’s fastest-growing and most profitable premium segment and is expected to indirectly replace the 2.

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

The 7 will also be the brand’s first model to be manufactured in Europe; the Swedish brand already has production in place in the USA, South Korea and China.

And it will mark Polestar’s move from a multi-platform approach to a single architecture, in a move to reduce “complexity, costs and investments”.

The business has also announced that it expects 2025 to be the strongest year in its history.

Michael Lohscheller, Polestar CEO, said: “With Scandinavian design, performance and a premium brand, Polestar has successfully positioned itself in the global automotive market. We have three outstanding cars on the road and a growing, passionate customer base.

“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.”

Other Polestar announcements include the arrival of more dealerships in Europe. Known as ‘spaces’, these will increase from 106 to 187 locations by 2026.

Moving forward, Polestar expects significantly increased revenue contribution from the sales of CO2 credits to traditional OEMs struggling to transition to EVs. The company has already created an EU CO2 pool with four OEMs for 2025 and says the demand for these credits is expected to increase in the coming years, to a “three-digit million-dollar amount per year”, from 2025.

The brand is also expanding into France, with sales starting in 2025. Additional expansion, across Eastern Europe, Asia and Latin America, is planned from 2026 onwards.

The Swedish carmaker is also launching its Polestar Energy service in 11 key markets in Europe (UK, Netherlands, Germany, Belgium, Sweden, Norway, Denmark, Spain, Italy, Austria, and Switzerland) with additional markets to follow in the second half of 2025. This offer could cut drivers’ home charging costs using the Polestar Energy app to turn on smart charging to get the lowest rate. The arrival of V2G capabilities in Polestar’s line-up will expand the incentives on offer.

“I’m hopeful that Polestar Energy becomes another important pillar of our business,” said Lohscheller.