Regardless of ongoing restructuring efforts and employees reductions, Polestar has refuted hypothesis that it’s withdrawing from the Chinese language market. The Swedish EV producer confirmed that Polestar Know-how’s three way partnership with Meizu stays operational. The corporate acknowledged current organizational modifications to enhance effectivity however emphasised that buyer providers and shareholder assist stay intact. Polestar is primarily owned by Li Shufu’s PSD Funding, together with Geely Holding and Volvo Automobiles.
Native studies, nonetheless, counsel a big downsizing. Since February, Polestar Know-how’s Nanjing headquarters has been transitioning, with high executives and employees anticipated to go away by mid-March. Put up-Lunar New Yr layoffs have reportedly affected about 50 staff in gross sales and operations, with compensation supplied. Polestar China now handles the handover administration in Shanghai, the place solely a small staff stays to supervise model fame and after-sales providers.
Polestar’s challenges in China are evident in its declining gross sales. In 2024, the corporate’s world gross sales fell 15% to 44,900 items, whereas its Chinese language gross sales have steadily declined since 2021. The Polestar 4 (see specs), the one mannequin produced on the Hangzhou Bay manufacturing unit, ceased manufacturing in early 2024 attributable to weak demand, with the ultimate batch manufactured between December 2023 and March 2024. Present Polestar choices in China embody the Polestar 2 (see specs), 3 (see specs), and 4, priced from 299,800 to 798,000 yuan (41,000 to 100,000 USD).
To deal with market challenges, Polestar is shifting manufacturing abroad. To mitigate tariffs on Chinese language-made autos, the Polestar 4 can be produced in South Korea in late 2025, whereas the upcoming Polestar 7 can be in-built Europe. These changes replicate the model’s broader world technique amid rising competitors and geopolitical commerce limitations.
Polestar Know-how was launched in June 2023 with roughly 200 former Polestar China staff to strengthen its native presence. Nevertheless, unclear strategic positioning and restricted native decision-making authority have hampered its efficiency. Whereas Polestar’s fashions debut in China, important selections stay beneath Swedish administration, limiting the model’s capability to adapt to the dynamic Chinese language EV market.
Regardless of setbacks, Polestar stays dedicated to China. In January 2025, the corporate launched a method concentrating on 30% to 35% annual retail gross sales development between 2025 and 2027, aiming for profitability by 2025. CEO Michael Lohscheller expressed confidence, calling 2025 a possible milestone 12 months for Polestar. Whether or not the model can efficiently reposition itself in China by way of strategic shifts stays unsure because the EV market evolves.
Supply: Autohome
