Polestar may be fully withdrawing from the Chinese market by the end of this year, Car News China has reported, citing Chinese news outlet NBD Auto. This is reportedly due to poor sales, as well as significant organisational restructuring in the region, the report wrote.
The Geely-owned Swedish brand has sold just 69 vehicles in China in the first half of this year, during which it experienced zero sales in the months of April and May. This contrasts with Polestar’s global sales of 30,319 vehicles in the first half of 2025, representing a 51% growth compared to the same period in 2024.
Organisational changes have suggested Polestar’s exit from China, including the joint venture between Polestar and Star Meizu, Polestar Times Technology which had halted operations in April, according to the report.
Polestar’s physical presence in China is limited to one direct sales outlet in Shanghai, while its online purchasing system has been shut down, and customers test drives require prior telephone appointments, which suggest operations have been almost fully suspended in the market.
According to NBD Auto, major investor in the Geely Holding Group controlled by Geely chairman Li Shufu, PSD Investment provided a US$200 million (RM845.5 million) cash injection into Polestar, and in doing so, PSD Investment increased its stake in Polestar to 44%, with Li’s combined stake in Polestar increased to 66%, while Volvo’s stake in Polestar reduced from 18% to 16%.
In February 2024, Volvo stopped funding Polestar and handed control of the EV brand to parent firm Geely, which took over Volvo’s 48% stake in Polestar at the time. The following month of March 2024 saw Polestar announce that it had secured US$950 million in external funding.
NBD Auto reported that Polestar stock price has dropped 90% since its IPO in 2022, and received a compliance notice from Nasdaq when its share price dropped below US$1 per share in 2024.
In terms of the brand’s products, the Polestar 2 was updated in April this year as a 2026 year model, bringing a larger battery for its base variant that raises its WLTP-rated range to 554 km. Meanwhile, the Polestar 7 premium compact SUV will be produced in Europe, while the Polestar 5 has been said to commence sales in the second half of this year.
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