Polestar CEO talks up used-car market as higher fuel prices spur shift to cheaper EVs

Polestar CEO Thomas Ingenlath emphasized the growing importance of the used electric vehicle (EV) market during an interview in Stockholm, Sweden, on October 26, 2023. He argued that persistently high fuel prices are accelerating consumer migration toward more affordable, pre-owned EVs, presenting a significant opportunity for the premium electric car brand to expand its customer base and improve overall sustainability through longer vehicle lifecycles. Ingenlath explained that the traditional rapid depreciation of new cars, combined with the current economic climate, is creating a 'perfect storm' for the certified pre-owned (CPO) EV segment. As new car prices remain elevated and financing costs increase, consumers are increasingly looking at second-hand options. For Polestar, this represents a strategic pivot; by actively promoting and certifying used models like the Polestar 2, the company can make its technology accessible to a broader audience while maintaining brand standards and customer trust through rigorous refurbishment and warranty programs. This focus on the secondary market is also framed as a core component of the brand's environmental mission. Extending the usable life of an EV maximizes the return on the substantial carbon investment made in its production. Ingenlath noted that a robust used market is essential for a sustainable automotive ecosystem, as it ensures vehicles stay on the road longer before recycling. The executive's comments reflect a broader industry trend where automakers, including Tesla and Volkswagen, are developing stronger CPO programs to manage residual values, foster brand loyalty, and support the transition to electric mobility at multiple price points.