Polestar's German sales surge 66% as dealer network expands for growth

Polestar Overhauls Dealer Partnerships from April 1 to Drive Next Growth Phase

As of April 1, Polestar is restructuring its collaboration with dealerships, introducing a new dealer agreement designed to lay the foundation for the next stage of its expansion. The Swedish-Chinese electric vehicle manufacturer emphasizes that this move underscores the pivotal role of its retail network in its long-term strategy.

Last year, Polestar had already transitioned to a "non-genuine agency model" and significantly expanded its retail presence. The latest contract overhaul is described as the next logical step to enable the planned network expansion. The company aims to double its number of locations in Germany this year and open a total of 30 "Polestar Spaces" by 2027.

According to Polestar, all existing partners have signed the new agreement, reaffirming their commitment to the brand and pledging further investment—"convinced of its future and continued development." In parallel, additional dealers from the network of Geely's sister brand Volvo are being gradually integrated to strengthen Polestar's presence in Germany.

"Dealers Are a Key Success Factor for Polestar"

Jan Grindemann, Regional Managing Director for Central Europe, stated: "Our dealer network is a cornerstone of Polestar's success. The willingness of our partners to sign the new agreement and continue investing in the brand demonstrates strong confidence in our direction. We are working very deliberately and closely with our dealers, and this step brings us even closer to our sales partners. This is crucial for sustainable growth."

Under the new contract, Polestar is introducing an "adjusted margin structure that places greater emphasis on local presence and the entrepreneurial expertise of our partners." A particular focus will be on serving small and medium-sized businesses, with dealers leveraging their regional roots to more effectively engage and expand their commercial customer base. Additionally, dealers will gain greater operational freedom to independently shape their activities and more actively represent the brand locally.

No More Exclusive Sales Territories

For the first time, the used-car business—branded as "Polestar Pre-Owned"—is formally integrated into the agreement. Some Polestar Spaces have already incorporated dedicated areas for pre-owned vehicles, offering customers a broader range of options, the company notes. At the same time, Polestar is lifting previous exclusivity restrictions on sales territories to foster broader, healthier growth and ease market entry for select new partners.

In February, Polestar announced a product offensive, with the Polestar 5, a new variant of the Polestar 4, a successor to the Polestar 2, and the newly unveiled Polestar 7 all set to launch within the next three years. "Expanding the retail network is therefore a critical step to adequately showcase our growing model lineup and reach new customers," the company explains.

2025 marked the most successful year in Polestar's history, with global growth of 34% and a 57% increase in Germany. The strong start to the current year has continued this trend, with the company reporting a 66% sales surge in Germany during the first two months alone.

"These results validate our strategic approach," Grindemann said. "The upcoming model expansion will further accelerate our positive trajectory. Now, it's about setting the right course to align our dealer network—and our partners—with our ambitious growth plans."