Connected with China, this Brand Car is Banned from Selling in America

Polestar 3 car. (Photo: Polestar)

JAKARTA - Polestar is confirmed to no longer be able to market new cars in the United States starting in 2027 after failing to obtain permission from the US Department of Commerce's Bureau of Industry and Security.

Launching from Carscoops, Friday, June 26, the rejection is related to the implementation of the Connected Vehicle Rule or Connected Vehicle Rule which restricts vehicles with certain technologies from China and Russia.

The electric vehicle brand, majority owned by Geely, is one of the latest manufacturers affected by Washington's policy. The United States government in recent months has continued to tighten restrictions on vehicles produced or have technological links with China.

The move is claimed to be part of efforts to protect the domestic automotive industry while maintaining national security. The Connected Vehicle Regulation completed during the Joe Biden administration prohibits vehicles that use Chinese or Russian software and hardware in their connectivity systems from entering the US market.

The local government assessed that the technology has the potential to open access to user data and allow vehicle control to be carried out remotely. The rules will be implemented gradually.

The restrictions on software apply to 2027 models, while hardware restrictions follow in 2030. Each automaker is required to obtain special authorization to continue selling vehicles in the United States.

Polestar is one of the companies that did not receive an exemption. Instead, Volvo, which is also under Geely's ownership, managed to get permission in May.

The policy is expected to have the most impact on the Polestar 3, which has been produced at the company's assembly facility in South Carolina since 2024. Vehicles assembled in the United States have not only been marketed to domestic consumers, but also exported to Europe.

Until now, it is not known what the fate of the production operation will be after the US government's decision takes effect. However, the stock of vehicles that have been available in the United States can still be marketed.

Inventories of the Polestar 3 and Polestar 4 are still sold to consumers. However, with the closure of the opportunity to sell new models after 2027, the future of the brand in the American market is a question mark, although the company promises to continue to provide after-sales services for customers who already have their vehicles.

On the other hand, Polestar does not seem to rely too much on the United States market. Based on company data, as much as 94 percent of retail sales in the first quarter of 2026 came from abroad.

This condition makes the company choose to shift the focus of expansion to other regions which are considered to have greater growth prospects. Polestar CEO Michael Lohscheller, said the company's strategy is now more directed to Europe and a number of emerging markets.

"The automotive industry is entering a new phase, based on regional dynamics. Our strategy reflects this, with Europe as our largest growth engine and our plan to produce the Polestar 7 in Europe," said Lohscheller.

"Our record sales in 2025 and the first quarter of 2026 show that we are making significant progress, with several new market launches taking place in Europe this year. In addition, we will continue to invest in markets where we have the opportunity to continue to grow, such as Southeast Asia, Eastern Europe, Latin America, and Canada," he explained.