Polestar Closes Final Physical Shop in China After Selling Just 69 Cars This Year

Polestar has closed its last remaining direct-sales store in China, marking a significant shift in its retail strategy as sales continue to lag. The Swedish-Chinese premium EV brand said it will now focus primarily on online sales to better align with the evolving demands of Chinese consumers in a fiercely competitive market.

Polestar pivots to online sales amid restructuring

The company confirmed that its Shanghai store at L+ Plaza in Qiantan has been shut down, though other operations in China remain unaffected, according to a CNEV Post report. Polestar emphasized that existing customer benefits will not be impacted as the company transitions to digital channels.

A Polestar service representative told local media that sales will now be handled almost entirely online, mirroring strategies already adopted by other automakers facing similar market headwinds.

Geely strengthens control as Polestar struggles in China

Once a Volvo performance spinoff, Polestar became an independent luxury EV brand in 2017 under the joint ownership of Volvo and Geely Holding. But the brand’s presence in China has steadily diminished amid intense domestic competition.

After Volvo reduced its stake to 16 percent and Geely took majority control this year, Polestar received a $200 million capital injection from a Geely-linked investment firm. Still, with just 69 cars sold in China in the first half of the year and reports suggesting a potential market exit by year-end, Polestar’s future in the region remains uncertain.

EV.com tracks the evolving EV collector space and performance electric vehicles hitting the market. Explore our listings to find the best EVs in your area available today.