Polestar, the Sweden-based premium EV brand backed by Geely Holding Group, has closed its last physical store in China, as it continues to face weak demand in the country.
The store was located at the ‘L+Plaza’ in the Qiantan district, Shanghai.
Approached by the local media outlet Lanjinger, Polestar said that it is “strategically adjusting its business model in China to better align with the country’s diverse and rapidly evolving consumer demands.”
“Although the Shanghai store has been temporarily closed, Polestar‘s other operations in China remain unaffected,” the brand stated, adding that “the rights and interests of existing car owners will not be impacted.”
The EV maker will adopt an online sales model in the country, while continuing to operate showrooms across several markets overseas.
In June 2023, the company formed a strategic joint venture with tech company Xingji Meizu Group to boost sales in the country.
However, the partnership was terminated in April, and the distribution rights were transferred solely to Polestar.
In August, local media outlet NBD Auto reported that the company was preparing to exit the Chinese market by the end of 2025.
According to a source inside the company cited by Yicai, the company was making business adjustments that were expected to be completed in the fourth quarter.
By then, the insider told the outlet that online purchasing had been closed and that test drive services could only be booked by phone.
As of Monday, Polestar‘s website features a configurator page, but it is only accessible via the WeChat platform.
Polestar only sold 69 vehicles in China in the first half of the year — with 56 of them having been registered in January.
In 2024, the brand had sold 1,864 units in the country.
The brand’s lineup in the country includes its Polestar 2 sedan and the Polestar 3 and 4 SUVs.
The Polestar 3, the company’s most expensive SUV, is manufactured in two locations: Chengdu, China, and at Volvo’s plant in South Carolina, in the US.
Polestar was originally Volvo’s performance division before it became an independent brand in 2017.
Its major markets are located in Europe, such as the UK and Sweden. Last month, it sold 2,758 vehicles in the UK, a new record for the premium brand.
Polestar has recently announced a new iteration of its Polestar 3 SUV, introducing several upgrades on performance, charging and processing power.
The upgraded Polestar 3 will start being delivered in the UK, “due to high demand and the previous model year being sold out in that market.”
