Polestar provides blueprint for start-up success in fleet

The transition to electric vehicles (EVs) has had a massive impact on how traditional car and van makers operate. It has also provided the opportunity for start-up electric-only brands to enter the UK market.

Tesla was the first of these, while brands such as Ora and BYD (Build Your Dreams) are currently making moves to break through.

One of the biggest successes though, particularly in fleet, has been Polestar which last year increased its annual UK sales by 80% to 7,300, with four-out-of-five going to fleet and businesses.

This is even more remarkable when you consider the standalone brand, which is 49% owned by Volvo, delivered just 800 cars in 2020.

Its growth reflects both the strength and relevance of its product. Polestar 2 was named best zero emission car at the 2021 Fleet News Awards, while the current benefit-in-kind (BIK) taxation system heavily incentivises the take-up of EVs among company car drivers.

Even the combination of these would have a limited impact without the presence of the right supporting structure, but the manufacturer has focused on ensuring it has the right people and systems in place, says Matt Hawkins (above), head of sales for Polestar UK and Ireland.

Its business model is geared around primarily working with leasing company account managers and sales teams – the people who already have established relationships with fleets.

“Polestar is very much an innovator and we are challenging the traditional automotive sector with our digital-first approach and our direct-to-consumer model,” says Hawkins.

“But what we’ve been very conscious of is just how well established and mature the fleet industry is in the UK. There are lots of very established processes and systems that the fleet market and its supply chain in the UK absolutely relies on.

“With our strategy we’ve tried to maximise all of the really cool, innovative things we can do to support customers, but also work within the framework that the leasing companies, the big fleet players and everybody that’s associated with the supply chain need us to work within.

“We need to be conscious of that and make sure, when we’re talking to those major players, that we don’t do anything that’s so radical that it’s going to create problems for them.”

Fleet portal

One of Polestar’s major developments has been its fleet portal, which enables leasing companies to place orders for cars online and fully digitally.

It facilitates the inclusion of end-user support terms and provides real-time access to order updates for lead time, VIN and registration details and planned customer delivery dates.

Leasing companies can download their own invoices and post-delivery documents, or choose to have them emailed automatically which is how Polestar previously operated.

The manufacturer has continued to invest in LeaseLink integration to further improve the quality of service provided in that ordering channel.

“We’ve also taken on two additional area fleet managers,” says Hawkins. “How we’ve structured those roles has been based on discussions and collaboration with leasing companies, because that’s where our core proposition stems from.

“They are out on the road and are really focused on how we can speak to fleets with a mind to being able to deliver more test drives and get more people to see and drive the product.”

Polestar is engaging directly with company car drivers in two main ways: through its Spaces locations as well as offering corporate test drives.

Spaces are operated by dealer partners and are designed essentially to be showrooms, but without any pressure to buy so people can look, drive and learn about the cars and technology in a relaxed environment.

Staff are not on commission for sales as all transactions are directly with Polestar, which, Hawkins says, gives all visitors the full retail experience: there is no lack of interest shown by Spaces employees when they learn the customer is a company car driver who, therefore, won’t be committing to a deal during their visit.

Polestar currently has four Spaces in the UK, including at its headquarters in Bicester (above) which it opened in December. It aims to double this number over the next 12 months. Locations for the new Spaces will include Bristol and Glasgow. 

Although these do not provide any aftersales facilities, the brand has a partnership with Volvo which allows its dealers to offer servicing and repairs to Polestar customers.

Test drives can be arranged through Spaces, while fleets are also able to hold meetings in one of the meeting rooms and let their employees drive the product while they are there.

“Or we can actually take the show to them,” says Hawkins. 

“For example, when we have customers who are launching a salary sacrifice scheme, opening up a new EV policy or just want to promote new brands to their drivers, we have the ability to take cars to them and deliver an arrive-and-drive event for that particular organisation.”

Polestar can provide an online system to allow employees to book a test drive, as well as have product experts on hand to talk about the cars and technology.

Future growth

These initiatives are expected to fuel future growth in the UK, although Jonathan Goodman, head of Polestar UK and Ireland, stresses the brand will not chase sales.

“The global growth plans for Polestar are pretty exciting and aggressive: we delivered 51,500 cars last year and our clearly stated objective is to be at 290,000 by 2025,” he adds.

“For the UK, you’ll never hear from me that our objective is X-number of sales because we won’t go slavishly chasing volume here.

“Our strategy is really all about organic growth, but what I can say is that you’ll see very strong growth from Polestar this year.”

The manufacturer will also have a “very aggressive roll-out” of new products, with a new vehicle each year for the next three or four years.

“We have Polestar 3 this year (see expanding range, below), Polestar 4 (a coupé) next year, Polestar 5 (four-door GT) the year after and then Polestar 6 (roadster) will follow that, so there’ll be a complete range of Polestar models on the road by the time we get to 2025/26,” adds Goodman.

“We plan to be a force in the EV market for many years to come.”

Expanding range

Polestar is now taking orders for its next model: the fully-electric large SUV Polestar 3, which will arrive in the UK later this year.

This will have a WLTP range of 379 miles, courtesy of a 111kWh battery pack, and will enter the premium end of the market (prices start at £79,900).

Polestar 3 will join an updated version of Polestar 2, which is receiving a number of revisions for the 2024 model year. These include increased safety equipment and greater ranges, with all models featuring upgraded batteries.

Long Range versions now feature an 82kWh pack, while the battery for Standard range versions retains a capacity of 69kWh, but are from a new supplier.

The Long Range Single Motor variant – the most popular model with fleets – has a WLTP range of 395 miles, an increase of 52 miles, while the Long Range Dual Motor models can now achieve up to 368 miles, 65 miles more
than before.

The Standard Range Single Motor version has a WLTP range of 322 miles, an increase of 25 miles.