Polestar launches its Polestar 3 electric SUV with a price cut of $29,000 in China. The automaker is consistently working toward increasing its sales this year. The Polestar 3 is a full-size SUV designed to compete with the Tesla Model X and Rivian R1S in the market for large electric SUVs. To enhance its competitiveness, Polestar has announced a substantial price reduction in the Chinese market, which is one of the most significant price cuts seen this year.
When the Polestar 3 was initially launched, it was advertised to Chinese consumers at a starting price of 880,000 yuan ($127,756), placing it in the luxury category. The high-performance version was even more expensive, starting at 1,030,000 yuan ($149,532). However, at the Chinese unveiling this week, Polestar lowered the price by an average of 200,000 yuan ($29,035), according to a report by CnEVPost.
The starting price of the Polestar 3 is now 698,000 yuan ($101,333), while the performance model starts at 789,000 yuan ($114,544), representing a price cut of 182,000 yuan ($26,422) and 232,000 yuan ($33,681), respectively. Polestar anticipates commencing production at its Chinese factory in mid-2023, and deliveries are expected to begin by the end of this year. In addition to this, the Polestar 3 will be manufactured at a joint production facility with Volvo in South Carolina, commencing in mid-2024, with deliveries following shortly thereafter.
The EV market in China
The Swedish electric car brand owned by Volvo and Geely has significantly reduced the price of its upcoming Polestar 3 electric SUV in China. The automaker slashed the initial price of the Polestar 3 by an average of ¥200,000 ($29,035) at its Chinese unveiling event. The luxury SUV now starts at ¥698,000 ($101,333), making it more competitive against other electric vehicles in the Chinese market, including the Tesla Model X and the Rivian R1S.
Polestar’s decision to lower its prices is likely due to the intense competition in the Chinese electric vehicle market. After Tesla’s price cut in the country at the end of 2021, many brands, including Volkswagen, BMW, and Ford, have followed suit, offering substantial discounts on their electric offerings. Polestar’s move will help the company compete against its rivals, as well as enable it to capture a larger market share in China. The Polestar 3 is expected to begin production at its Chinese factory in mid-2022, with deliveries starting at the end of the year. The company plans to produce the vehicle at a shared facility with Volvo in South Carolina, starting in mid-2024, with deliveries following shortly afterward. It remains unclear if Polestar intends to offer its reduced prices in the United States, but it would make sense.