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Polestar Closes Its Last Direct-Run Store in China Amid Strategic Business Shift
Polestar has closed its last direct-operated store in Shanghai, shifting to an online sales model as part of a strategic adjustment to better fit China's dynamic consumer market. The closure follows low vehicle sales, with only 69 units sold in the first half of 2025. Future speculations suggest a possible exit from China by the year-end; however, Polestar reassures that existing owners' rights remain unaffected.
Key points
- Polestar closed its last direct-operated store in Shanghai.
- The closure is part of a strategic adjustment to adapt to the changing consumer market in China.
- Sales have shifted online due to poor performance, with only 69 vehicles sold in H1 2025.
- No sales were recorded in April and May 2025.
- Some reports speculate that Polestar may exit the Chinese market by year-end.
Why it matters
- This move aligns with the broader trend of automakers shifting to online sales channels to reach consumers directly.
- In response to changing consumer habits post-COVID-19, many businesses, including automakers, have re-evaluated their retail strategies.
- By 2025, the IT trend of e-commerce and digital retail has become crucial for automotive sales, driven by consumer preference for online shopping.
Polestar's closure of its Shanghai store and transition to online sales illustrates the challenges of the EV market in China and highlights a significant shift in sales strategies, reflecting broader trends that may affect its long-term viability in the region.