Polestar CEO Pushes EU to Keep 2035 ICE Ban as EV Sales Surge, June 19

Polestar CEO Michael Lohscheller has called on the EU to maintain its 2035 ban on internal combustion engines, rejecting the European Commission’s revised plan to allow 90% emissions reductions instead. The Swedish EV maker, which sells 78% of its vehicles in Europe, faces planning uncertainty from EU tariffs on Chinese-made cars. Lohscheller’s stance highlights a split between pure-play EV makers and legacy automakers seeking regulatory flexibility.

EU Weakens Climate Targets Amid Industry Pressure

The European Commission revised its original 2035 internal combustion engine ban to allow a 90% emissions reduction instead. This change would permit combustion and hybrid vehicles to remain on the market beyond 2035. Renault, Volkswagen, and Stellantis jointly urged politicians to create a 70% local content rule for EU cars, citing weak demand and underutilized factory capacity. European carmakers argue that a more realistic regulatory framework is needed to restore competitiveness.

Polestar Rejects Hybrid Strategy Amid Policy Uncertainty

Lohscheller stated that Polestar will not offer plug-in hybrids or extended-range electric vehicles, maintaining focus on pure battery electric cars. He told the Automotive News Europe Congress in Brussels that “conditions are given to ensure political reliability” and that Europe should lead electrification. The company’s all-electric strategy depends on consistent EU policy. Lohscheller emphasized focus and clarity as core to Polestar’s positioning within the Geely Group.

European EV Growth Outpaces Political Headwinds

European EV sales grew 30% in 2025, with fully electric cars making up more than one in five new registrations in the EU during April 2026. Around 750,000 battery electric vehicles sold across the EU in the first four months of 2026. Higher fuel prices and lower EV running costs are driving adoption despite regulatory uncertainty. BloombergNEF projects global passenger EV sales to reach 23.3 million in 2026, an 11% rise on 2025.

Chinese Tariffs Squeeze Polestar’s European Operations

The majority of Polestar’s European sales come from Chinese production, making EU tariffs on Chinese-made EVs a material headwind. Lohscheller acknowledged that Polestar must move production closer to sales markets to manage tariff exposure. The company produces vehicles in China and South Korea through a Geely-Renault joint venture. Polestar’s reliance on imports exposes it to ongoing trade tensions between Europe and China.

Final Thoughts

Polestar’s push for EU policy certainty reflects the EV sector’s divergence from legacy automakers. With European EV adoption accelerating despite regulatory uncertainty, pure-play makers face cost pressures from tariffs and demand weakness that could test their all-electric commitment.

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