Summary
- Used Polestar sales up 47% in Q1
- Financial forecast expected in Q4 earnings report
- US sales decline to 5.6% of total amid strong competition and economic pressures
(Reuters) – Polestar CEO Michael Lohscheller said on Thursday used-car sales were exceeding those of new vehicles, as a jump in gasoline and diesel prices from the war in Iran drives customers toward less-expensive EV options.
Used electric vehicles sales in Europe have been boosted by the war in Iran, online car platforms told Reuters last month.
“Used cars are growing faster than new cars, especially because so many people are coming now and saying, ‘we are price-sensitive people. We look at EVs, and we prefer used cars,'” Lohscheller told Reuters after the company released its first-quarter sales.
Sales of Polestar’s used vehicles jumped 47% in the quarter, he added. Overall sales rose 7% to 13,126 cars.
In February, Polestar said it expects low-double-digit volume growth this year without providing any financial forecast.
On Thursday, the company said it would disclose its outlook with its fourth-quarter results, which it is required to submit before the end of April, though the exact date is not yet set.
The sales growth reflects Polestar’s strategic emphasis on the European market – a pivot it made over the past year to boost margins and revenue amid uncertain global EV demand, a spike in costs and widening losses.
Lohscheller signaled growing opportunity in southern Europe, where EV penetration remains low but which has big markets with the potential to overtake Sweden soon.
While momentum in Europe continues, the company has fared poorly in other key markets such as the U.S. where it sold just 735 vehicles during the quarter, amounting to 5.6% of its total sales, down from 11.1% last year.
Reporting by Zaheer Kachwala in Bengaluru; Editing by Vijay Kishore and Sriraj Kalluvila
