Polestar aims to compete with Tesla in China

Polestar aims to compete with Tesla in China

June 3, 2020 0 By autotimesnews

Volvo’s premium subsidiary EV Polestar plans to significantly expand its China showroom network to compete with Tesla.

The Polestar 2 electric car is a direct competitor to the Tesla Model 3 (made in China), and deliveries are reported to begin in July. However, Polestar has only one exhibition hall in the People’s Republic, in Beijing, and there will be 20 of them in its plans, most of which will open in the third quarter of this year.

Unlike traditional automakers, Polestar will not use the dealership network to sell its cars. Instead, it will be sold directly to consumers, just like Tesla, Nio, and Xpeng.

Using this system of direct access to consumers, car manufacturers can better manage the retail price of the car, as well as its production and inventory. However, it is also a more expensive method, as car manufacturers need to invest in these own car dealerships.

According to Autonews Europe, Polestar’s solution is to partner with investors to build and operate car dealerships, as well as to manage sales and delivery of cars.

In China, the Swedish brand will open its newest exhibition halls, first in Shanghai, and then enter the coastal Ningbo, northern Tianjin and southern Guangzhou. These showrooms will mainly be found inside shopping centers.

Tesla currently has more than 50 showrooms in China, and Nio operates around 110. Meanwhile, Xpeng plans to have more than 200 stores by the end of 2020, compared to about 150 now.