Polestar, the Sino-Swedish electric vehicle brand, is facing challenges in the Chinese market. Recent reports suggest that the company has closed all of its direct-to-consumer stores in China, with the exception of one store in Shanghai. This move has fueled speculation that Polestar may exit the Chinese market entirely before the end of the year.
The lack of sales in China has been a significant concern for Polestar, with only 69 cars sold in the country during the first half of 2025. Despite being backed by its parent company, Geely Group, and having successful sister brands like Zeekr and Lynk & Co, Polestar has struggled to gain traction in the Chinese market.
In response to these challenges, Polestar is reassessing its operations in China. A company spokesperson stated, “China remains one of the world’s largest but also most competitive EV markets. Together with Geely, we are assessing the best path forward for our operations in the Chinese market, with a focus on achieving better profitability and stronger synergies within the Group.”
There are several factors that may have contributed to Polestar’s struggles in China. The Chinese EV market is known for being value-oriented, with consumers prioritizing features like screens, affordability, and unique functionalities. Polestar’s minimalist design and focus on Scandinavian aesthetics may not have resonated with Chinese consumers who prefer more flashy and tech-savvy options.
Additionally, internal competition within the Geely Group, which owns Polestar, could be impacting the brand’s performance in China. With other brands like Zeekr and Lynk & Co offering alternative electric vehicle options, Chinese consumers may be more inclined to choose these brands over Polestar.
While it is unclear whether Polestar will fully exit the Chinese market, the brand may undergo significant changes in its approach to the region. With the global EV market showing positive growth for Polestar, the company will need to strategize effectively to overcome its challenges in China and establish a stronger presence in the market. Polestar, the electric vehicle brand under the Volvo umbrella, has been making waves in the EV market with its stylish and performance-oriented vehicles. The brand has already announced plans to launch the Polestar 7, a compact SUV that will join the existing Polestar 3 and 4 models in the lineup. Additionally, the popular Polestar 2 is set to make a comeback in the near future.
However, recent rumors suggest that Polestar may be facing challenges in the Chinese market, leading to speculation about the brand’s future product offerings. While Polestar has seen success in other regions, such as Europe and the United States, it remains to be seen how the brand will navigate the complexities of the Chinese market.
Despite these uncertainties, Polestar remains committed to its mission of creating cutting-edge electric vehicles that push the boundaries of design and technology. With a focus on sustainability and performance, Polestar is poised to continue making a significant impact in the automotive industry.
For more information on Polestar’s future plans and product offerings, stay tuned for updates from the brand. And if you have any insights or information to share, feel free to reach out to the author at kevin.williams@insideevs.com.
In conclusion, while the future of Polestar in China may be uncertain, the brand’s commitment to innovation and excellence remains unwavering. As Polestar continues to expand its product lineup and reach new markets, the possibilities for the brand are endless. Stay tuned for more exciting developments from Polestar in the near future.