• Polestar imported ample inventory pre-surtax, ensuring competitive pricing for 2025 in the Canadian market.

• Polestar 3 production in South Carolina sidesteps Chinese surtax, ensuring sustained Canadian affordability.

• A $5,000 rebate for Polestar 2 buyers mitigates lost federal EV incentives until February’s end.

During the Montreal Auto Show, we spoke to Hugues Bissonnette, head of the Polestar brand in Canada. Over the past few months, he revealed his plan to avoid paying a 100% surtax on Polestar vehicles manufactured in China. This would have made the Polestar 2 and Polestar 3 far too expensive to compete in their respective segments.

Last August, the Canadian government announced the imposition of a 100% surtax on all electric vehicles manufactured in China. The aim was simple: to thwart and delay the arrival of low-cost electric vehicle manufacturer BYD. However, this measure, which came into force on October 1, has a major impact on other car manufacturers already well established in Canada. This is the case for Polestar, which has once again demonstrated its creativity in skirting the surtax.

So Mr Bissonnette and his team had the brilliant idea of importing as many units as possible between the Canadian government’s announcement and the end of the grace period allowed for manufacturers needing to adjust. In just a few weeks, Polestar Canada was able to stock enough inventory to adequately meet demand for Polestar 2 and 3 for the entire year 2025.

In this way, Polestar Canada avoids drastically increasing the price of its vehicles in Canada by passing on the 100% surcharge to its customers.

A new plant in South Carolina

That said, if Polestar has covered its tracks for 2025, what about the future? First, since last August, the manufacturer has been assembling the Polestar 3 in a new factory in South Carolina. So, it’s safe to assume that the next series of Polestar 3s destined for the Canadian market will come from South Carolina rather than China. What will happen to the Polestar 2 and where it will be assembled remains unclear.

Polestar 3 Single Motor Begins US Production with 563 km Range

5,000 until the end of February for Polestar 2 buyers

Following in the footsteps of Hyundai, Volkswagen, and Nissan, Polestar has also announced that it will offer an additional $5,000 rebate to customers who purchase a Polestar 2 between now and the end of February. This offer is intended to compensate for the suspension of the federal government’s zero-emission vehicle incentive programme. Under this programme, Canadian consumers could benefit from a subsidy of up to $5,000. The programme has been suspended since 13 January.