Polestar is experiencing a tale of two markets. The premium EV brand just set a UK sales record with over 2,755 cars sold in September, nearly tripling August’s 729 units, but simultaneously closed its last physical store in China after moving just 69 vehicles in the first half of 2025.
The UK success represents 13.5% growth over September 2024’s previous record of 2,429 units. Year-to-date figures show 12,630 registrations through September 30, almost doubling the 6,361 EVs sold in the same period last year.
Meanwhile in Shanghai, Polestar shuttered its final L+Plaza store in the Qiantan district.
The brand told local outlet Lanjinger it’s strategically adjusting its business model to better align with China’s diverse and rapidly evolving consumer demands, shifting to online only sales model in the country.
The China exit follows the termination of a partnership with tech company Xingji Meizu Group in April after forming a strategic joint venture in June 2023 to boost sales.
Polestar sold just 1,864 units in China during 2024, with 56 of this year’s 69 sales happening in January alone.
UK success stems partly from aggressive pricing strategy. Polestar currently offers $2,660 seasonal discount on models 2, 3, and 4 valid until December 31.
The Polestar 2 sedan starts at $58,000 after $2,660 price cut, with the Polestar 4 SUV at $78,000. The recently launched Polestar 5 GT starts at $119,000.
The upgraded Polestar 3 SUV begins at $93,500 in the UK with a five to six-month delivery time due to high demand and previous model year selling out. That’s up from the previous $91,400 starting price.
Polestar’s UK portfolio includes the 2 sedan, 3 and 4 SUVs, and newly launched 5 GT. The brand debuted the four-door performance Grand Tourer at Germany’s IAA Auto Show last month.
The UK government launched $873 million Electric Car Grant Program in August running until 2028/2029, offering discounts up to $5,000 for EV models priced under $49,500.
Over 35 models qualify for up to $2,000 discount already, though Polestar models aren’t yet included.
Polestar was originally Volvo’s performance division before becoming independent brand in 2017. Major markets are located in Europe, particularly UK and Sweden.
The Polestar 3 is manufactured in two locations: Chengdu, China, and Volvo’s South Carolina plant.
The contrast shows just how much geography, competition and customer preference can make or break an EV brand.
Chinese consumers face overwhelming domestic options from BYD, XPeng, and other local manufacturers offering compelling technology at lower prices, while UK buyers embrace premium European-positioned brands with government incentives supporting adoption.
