Polestar May Be Packing Up in China

The electric vehicle brand Polestar, owned by Volvo, PSD Investment, and Geely Holding, is facing turbulent times in China. Sales figures have been steadily declining since 2021, and by 2023, the brand failed to meet its sales targets. This has fueled speculation that Volvo may cut off funding, potentially leading to Polestar’s complete withdrawal from the Chinese market.

Recent developments suggest that restructuring is already underway. The Polestar Technology headquarters in Nanjing is laying off 50 employees, while the Shanghai office has been reduced to a small team focusing primarily on after-sales services. Additionally, Polestar has ceased production of its only locally manufactured model, the Polestar 4, at its Hangzhou factory.

Despite these changes, the company maintains that Polestar Technology is operating as usual and that the restructuring aims to better adapt to market shifts and improve efficiency. Production is shifting to South Korea, where Polestar 4 manufacturing is set to begin in late 2025, while the upcoming Polestar 7 will be built in Europe.

Although rumors of Polestar’s departure from China persist, the company insists that the brand, along with its shareholders and partners, including Meizu, remains committed to expanding its presence in the Chinese market.