Polestar responds to exit rumours amid restructuring in China
Despite ongoing restructuring efforts and staff reductions, Polestar has refuted speculation that it is withdrawing from the Chinese market. The Swedish EV manufacturer confirmed that Polestar Technology’s joint venture with Meizu remains operational. The company acknowledged recent organizational changes to improve efficiency but emphasized that customer services and shareholder support remain intact. Polestar is primarily owned by Li Shufu’s PSD Investment, along with Geely Holding and Volvo Cars.
Local reports, however, suggest a significant downsizing. Since February, Polestar Technology’s Nanjing headquarters has been transitioning, with top executives and staff expected to leave by mid-March. Post-Lunar New Year layoffs have reportedly affected about 50 employees in sales and operations, with compensation provided. Polestar China now handles the handover management in Shanghai, where only a small team remains to oversee brand reputation and after-sales services.
Polestar’s challenges in China are evident in its declining sales. In 2024, the company’s global sales fell 15% to 44,900 units, while its Chinese sales have steadily declined since 2021. The Polestar 4 (see specs), the only model produced at the Hangzhou Bay factory, ceased production in early 2024 due to weak demand, with the final batch manufactured between December 2023 and March 2024. Current Polestar offerings in China include 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 address market challenges, Polestar is shifting production overseas. To mitigate tariffs on Chinese-made vehicles, the Polestar 4 will be produced in South Korea in late 2025, while the upcoming Polestar 7 will be built in Europe. These adjustments reflect the brand’s broader global strategy amid increasing competition and geopolitical trade barriers.
Polestar Technology was launched in June 2023 with approximately 200 former Polestar China employees to strengthen its local presence. However, unclear strategic positioning and limited local decision-making authority have hampered its performance. While Polestar’s models debut in China, significant decisions remain under Swedish management, limiting the brand’s ability to adapt to the dynamic Chinese EV market.
Despite setbacks, Polestar remains committed to China. In January 2025, the company introduced a strategy targeting 30% to 35% annual retail sales growth between 2025 and 2027, aiming for profitability by 2025. CEO Michael Lohscheller expressed confidence, calling 2025 a potential milestone year for Polestar. Whether the brand can successfully reposition itself in China through strategic shifts remains uncertain as the EV market evolves.
资料来源 汽车之家
