Polestar and Volvo on a collision course as both target electric-car customers
Sister brands Volvo and Polestar will soon be competing for the same customers once Volvo turns its back on petrol power and switches to an electric line-up.
Chinese-owned electric specialist Polestar is on a collision course with sister brand Volvo amid a rapid shift to battery-powered vehicles.
The two sibling rivals will be chasing the same customers once Volvo turns its back on petrol in Australia by the end of 2026 and makes the switch to solely electric-powered vehicles.
Polestar was previously – and briefly – the high-performance offshoot of Chinese-owned, Swedish car-maker Volvo but it was spun off in 2018 as a standalone electric brand .
The original plan was for Polestar to lead the charge on electric cars while Volvo made a gradual transition away from petrol power.
Volvo has since accelerated its electric-car plans, putting the sister brands on a collision course.
Volvo has announced plans to go electric-only globally in 2030 – and in Australia by the end of 2026 – and rolled out multiple electric vehicles twinned under the skin with Polestar cars.
Electric cars from Volvo and Polestar offer similar levels of performance and driving range – and today’s Polestar cars share their design DNA with Volvo.
When asked how Polestar will set itself apart from Volvo once it loses one of its key differentiators – electric power – Polestar executive Fredrika Klarén told Australian media the two brands will soon head in different design directions.
Polestar executives also say their vehicles will increasingly be skewed towards high-performance models.
Other factors likely to influence car buyers are the two different business models locally.
Polestar has non-negotiable fixed prices and an online sales structure with retail outlets limited to a small number of shopfronts. Most, but not all of these locations offer test drives; the recently-opened Chadstone store in Melbourne is set to add test drives in the coming weeks.
Meanwhile, Volvo cars in Australia are sold and serviced by traditional dealership showrooms and the vehicle purchase prices are negotiable.
In Australia, Polestar is yet to secure the support of most of the 32 dealers in the Volvo network for ongoing customer service, recalls and warranty complaints for Polestar cars – because Polestar has for now sidestepped Volvo dealers so head office can directly pocket the profit from each vehicle.
Today’s Polestar vehicles look similar to Volvo cars even though they wear unique sheetmetal – and share underpinnings with Volvo cars, as well as a number of interior components.
For example, the Volvo EX90 and Polestar 3 (pictured above) wear different bodywork, and have different numbers of seats (seven in the Volvo, five in the Polestar).
But under the skin the two vehicles are identical, with the same dual-motor drivetrains, power outputs, and near-identical interiors – sharing steering wheels, centre consoles, seats, touchscreens, instrument displays, and more.
Also twinned are the Polestar 2 sedan and Volvo XC40 small SUV, with near-identical drivetrains – with the exception of a power-boosting $1600 Performance Software Upgrade exclusive to the Polestar 2.
However, the Polestar 5 sedan (below) and Polestar 6 roadster (above) – due in 2024 and 2026 respectively – are set to be the first standalone Polestar cars, based on Polestar-developed aluminium architectures, with bespoke bodywork and unique electric motors.
"We absolutely want to collaborate and share technology, platforms going ahead. But when it comes to design, you're going to see … clearer distinction," Ms Klarén said.