Polestar has taken a page out of Nio's book by stripping out some of the perks, thus lowering the Polestar 4's starting price by 14 percent to RMB 299,900.
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Polestar, the premium electric vehicle (EV) maker owned by Geely and Volvo Cars, has slashed the prices of its Polestar 4 SUV in China significantly, as deliveries of the new model are set to begin.
Polestar China CEO Shen Ziyu announced at an event this evening that the benefit package that was originally included in the Polestar 4's prices will be stripped out, thus lowering the model's starting price to just under 300,000 yuan ($41,390).
The move is similar to Nio's (NYSE: NIO) strategy earlier this year, which saw the company remove the free battery swap entitlement on June 12, cutting the prices of all models by RMB 30,000 yuan.
Polestar officially launched the Polestar 4 in China on April 18, the first day of the Shanghai auto show, offering six versions, including three single-motor versions and three dual-motor versions.
The six versions started at RMB 349,800, RMB 387,800, RMB 417,800, RMB 453,800, RMB 483,800, and RMB 533,800 at the time of the initial launch.
The price range is significantly higher than the Model Y, a Tesla SUV currently offered in three versions priced at RMB 266,400, 302,400, and 363,900 respectively.
Prior to today's price cut, Polestar eliminated half of the available versions of the Polestar 4, retaining only two single-motor versions and a dual-motor version with starting prices of RMB 349,800, RMB 417,800, and RMB 453,800, respectively, as shown by the vehicle configurator on its website.
In today's tweak, Polestar reorganized the available versions of the Polestar 4 into four, with starting prices of RMB 349,800, RMB 387,800, RMB 423,800, and RMB 453,800, including the benefit package.
After the package was stripped out, the starting price of the entry version was reduced by RMB 49,900, or 14.27 percent, to RMB 299,900.
The prices of the other three versions have been reduced by RMB 47,900, RMB 53,900, and RMB 53,900, or around 12-13 percent. They start at RMB 339,900, RMB 369,900, and RMB 399,900 respectively.
The first Polestar 4 customers will be able to opt for the entitlement package, thus purchasing the model at the price before the reduction. The benefit package includes three years of free roadside assistance, vehicle internet connectivity and other entitlements.
Polestar is also offering customers a price protection promise that until December 31, 2024, if the Polestar 4's official prices go down, then the company will reimburse customers for the difference.
Currently, all of Polestar's models are built in China. Yesterday, the company announced that the first production Polestar 4 rolled off the production line at one of Geely's plants in Hangzhou, Zhejiang province.
At today's launch event, Polestar said deliveries of the Polestar 4 will begin in China in December.
($1 = RMB 7.2478)
Nio cuts starting prices by $4,200 for all models and makes battery swap benefits optional
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