Polestar Canada intends to strengthen its presence in the electric vehicle (EV) market by 2025, despite heavy tariffs imposed by Ottawa on Chinese EV imports. Its most popular model, the Polestar 2, is assembled in China and is directly affected by the measure.
Strategic expansion of the distribution network
Polestar Canada boss Hugues Bissonnette is counting on an expansion of the distribution network and the arrival of new models to maintain the company's momentum. In 2024, Polestar doubled the number of its dealerships in Canada from three to six, with new locations in Quebec City and Ottawa as well as a second site in Toronto.
The expansion doesn't stop there. Polestar plans to open new sales outlets in Calgary and the Maritime provinces, as well as additional boutiques and service centres in Montreal, Toronto and Vancouver. The goal is to have between 10 and 12 dealerships across the country.
An expanded model range to counter tariffs
Until recently, the Polestar 2 has the only model offered in Canada. But amid geopolitical turmoil and as part of the evolution of the brand's strategy, Polestar is diversifying its offering.
Since November 2024, the company has sold the U.S.-assembled Polestar 3 mid-size SUV in Canada. Priced from $98,800 CAD (including fees), it aims to compete with top-of-the-range models from Germany and Tesla.
Polestar is also preparing the arrival of the Polestar 4 compact SUV that will land in the fall of 2025 at a price of $67,600 CAD. Initially produced in China, this model will also be assembled in South Korea to avoid the 102.5-percent tariff imposed by Canada on Chinese imports.
End of Polestar 2 imports to Canada
Faced with prohibitive tariffs on Chinese EVs, Polestar anticipated the situation by building up a stock of Polestar 2s sufficient to cover the 2025 model-year. However, once those stocks are exhausted, the brand has no further plans to import the 2 into Canada, barring changes in commercial or pricing policy.
Hugues Bissonnette declined to give precise sales targets for 2025, but he said Polestar is aiming for a market share higher than the 1.2 percent achieved in 2024. Last year, Polestar sold some 2,900 vehicles in Canada, an increase of 22.4 percent over the previous year. The growth is attributable to strong demand for the Polestar 2 (2,650 units) and the promising debut of the Polestar 3 (250 units).
