Polestar’s sales presence in China has sharply contracted, with the Swedish-headquartered, Geely-backed electric vehicle brand now operating just one direct-sales outlet in Shanghai and suspending online sales, according to CarNewsChina and Yicai. The company recorded no local sales in April and May, with only 69 vehicles delivered in the first half of 2025, CarNewsChina reported.
Industry sources cited by the outlets say the retreat reflects a combination of falling demand and a restructuring of the brand’s China strategy. Test drives are now available only by prior phone arrangement, and the single remaining retail location marks a steep drop from the company’s earlier footprint.
In April, Polestar dissolved its joint venture with Star Meizu, a unit set up in 2023 to handle vehicle design, software, and sales, citing a shift in “market focus and strategy” while maintaining that it remains committed to the Chinese market, Yicai reported.
Polestar’s domestic slowdown contrasts with its global performance. The automaker delivered 30,300 vehicles worldwide in the first half of 2025, a 51% increase from a year earlier, supported by new model launches, entry into markets such as France, and expanded retail via Volvo’s dealership network.
China remains a key production base for Polestar, and in June, PSD Investment Limited, a Geely Holding Group affiliate controlled by Li Shufu, injected $200 million into the company, raising Li’s direct stake to 66% and consolidating Geely’s overall ownership to around 80%.
The funding comes as Polestar ramps up investment in upcoming models including the Polestar 5, Polestar 6, and a compact SUV, the Polestar 7, slated for European production from 2026.