According to Polestar sales staff, remaining inventory is heavily discounted. The 2025 Polestar 2 dual-motor model, originally priced at 398,000 CNY (c. $54,400), is now offered at 229,000 CNY (c. $31,300). The single-motor variant dropped from 338,000 CNY (c. $46,200) to 169,000 CNY (c. $23,100).

All available units were produced in December 2024 and released for sale in April 2025, with no test drives offered.

While retail operations wind down, Polestar’s China facilities remain crucial to its global supply chain. The company’s Taizhou plant builds the Polestar 2, Chengdu handles the Polestar 3, Ningbo produces the Polestar 4, and Chongqing is set to manufacture the upcoming Polestar 5. Most of these vehicles are exported, as China remains as Polestar’s main production hub.

On October 13, Polestar closed its final direct-operated retail store in China, located at Shanghai’s Qiantan L+Plaza. The Swedish electric performance brand, backed by Volvo Cars and Zhejiang Geely Holding, said it is transitioning to an online-first model to better adapt to China’s fast-evolving EV market.

Company representatives said the retail closures would not affect existing customers and that operations in production, R&D, and global business support will continue.

The restructuring comes as Polestar struggles to gain traction in the world’s largest EV market. Despite global retail deliveries of 44,482 units in the first nine months of 2025—up 36% year-on-year—its domestic sales remain negligible. Only 69 cars were sold in China in the first half of 2025, with no recorded deliveries in April and May.

The company has seen frequent management changes. Since its founding in 2017, Polestar China has gone through seven local heads. In July 2025, legal representative Wu Huijing stepped down and was replaced by Hu Shiwen, who now also serves as General Manager for China.

Polestar Technology, the 2023 joint venture with Xingji Meizu aimed at localizing operations, was dissolved earlier this year. Under the termination agreement, Polestar regained full distribution rights in China.

Volvo Cars reduced its stake in Polestar to 18% in 2024 and announced it would no longer provide financial support. Following the divesture, Geely Holding became Polestar’s second-largest shareholder.

Conversion rate: 1 USD = 7.31 CNY as of October 18, 2025.