Polestar closes stores in China

ELECTRIC vehicle brand Polestar is scaling back its presence in China, reducing its network, and exiting a sales and marketing joint venture with a local company.

According to a report publishing by Bloomberg this week, Polestar has decided on a different approach to sales in the world’s largest automotive market, saying a lack of resources and intense competition will change the way it does business in the People’s Republic.

“It’s quite normal that we have different setups in different markets and of course, the Chinese market is competitive,” said Polestar CEO Michael Lohscheller.

“Polestar is still a young company. We obviously have limited resources. We see a lot of growth in Europe.”

Mr Lohscheller said Polestar had exited its joint venture with Hubei Xingji Meizu Group as the result of “a change in market focus and strategy”. The venture took care of sales, customer service, and other commercial activities for the Geely-owned brand in China.

According to data from the China Automotive Technology and Research Centre, Polestar sold just 3120 vehicles in China across 2024, a fraction of the number (44,850) it shipped globally.

“We are committed to the Chinese market, but we need to prioritise certain markets,” added Mr Lohscheller, saying UK and French markets are experiencing solid growth.

“So obviously we prioritise certain things.”

With Bloomberg