- Allegedly, Polestar has closed all of its direct-to-consumer stores in China, except one in Shanghai.
- The lack of sales has caused Chinese media to speculate that the brand may exit China before the end of the year.
- Polestar says it is “assessing the best path forward for [its] operations in the Chinese market.”
On one hand, it feels like Polestar is finally turning a corner. The Sino-Swedish brand has struggled as of late, no thanks to tariffs on Chinese-made goods. Luckily, Polestar is shifting its production to other parts of the world in response as it broadens its lineup beyond one electric sedan.
The semi-discontinued Polestar 2’s simplified U.S. lineup may not be the greatest deal on the market, but the South Carolina-made Polestar 3 and coming-soon-to-America Polestar 4 have done a lot to lift the brand’s sales slump.
Globally, the brand moved 30,319 cars—an increase of 51% compared to last year. It sounds like Polestar is rebounding into an EV success story for every market, right?
Not so fast. In China, the home of its parent company Geely Group and the country where the Polestar 2 is made, the brand is performing abysmally. For the first half of 2025, Polestar has only managed to sell a whopping 69 cars. No, that’s not a typo.
Despite Geely ownership and the success of related brands like Zeekr and Lynk & Co, Polestar has never really resonated in China. (The Polestar 2 has been an astoundingly rare sight on our trips to the country.) The lack of cars sold has led some Chinese media to speculate that the brand may soon close up shop in China.
It’s not a rumor without merit, either; according to reporting from CarNewsChina, Polestar has closed down all of its direct-to-consumer stores in China aside from one in Shanghai. The online purchasing portal is shut down, and test drives must be scheduled via phone call to the one remaining store.
“China remains one of the world’s largest but also most competitive EV markets,” a Polestar spokesperson told InsideEVs. “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.”
It’s not entirely clear why Polestar flopped in China, but I do have an inkling as to why.
As impressive as the Chinese EV market is, it tends to be highly value-oriented. Polestar’s lineup of crossovers (and a sedan) with Scandinavian vibes and sporty driving dynamics may not be enough to go against the Denza (BYD) or Avatr models that are chock full of screens, cost less, and have fun party tricks, like the ability to moonwalk into a parking space. Minimalism doesn’t cut it in a new-money country like China; those buyers love purple paint, bright interior ligthing, tons of apps and comfort in traffic jams over corner-carving.
Also, there’s a lot of internal competition within its parent company, Geely. Why buy a Polestar when you could have a Zeekr? Or a Lynk & Co? Or a Smart?
Photo by: BYD
So, perhaps there’s some truth to this rumor. It’s not clear if Polestar will close up shop in China, but there may end up being a significant retooling of how it’s run. Perhaps this means that Polestar will get a new product? The brand has already announced its intention to launch the Polestar 7, a more traditional compact SUV to slot with the 3 and 4, and the popular Polestar 2 will make a comeback eventually too.
But perhaps those cars are destined to find success elsewhere in the world.
Contact the author: kevin.williams@insideevs.com
