China’s Malls Trade EV Showrooms for Robotics and Retail Therapy
BEIJING – A shift is underway in China’s retail landscape, as once-prime mall space previously occupied by electric vehicle showrooms is now being filled by brands catering to leisure and experience, including robotics companies and sportswear labels. The change reflects a slowdown in EV sales and a landlord preference for tenants that drive consistent foot traffic, according to property consultants.
Several years ago, major shopping malls in Beijing and Shanghai boasted prominent ground-floor showrooms for EV brands, often featuring test drives in adjacent parking areas. Now, many of those stores have closed, but mall owners aren’t feeling the pinch. Instead, they’re seeing increased demand from companies like Pop Mart, known for its collectible toys, sportswear brands such as Lululemon, and, more recently, robotics firms like Unitree Robotics.
“From the landlord perspective, malls may also have become less eager to host EV showrooms than they were initially,” said James Macdonald, head of research for China at property consultant Savills. “As the sector has matured, many malls have placed greater emphasis on lifestyle, dining, entertainment and experiential retail formats that tend to drive more consistent consumer traffic.”
The evolving tenant mix comes as China’s EV market faces headwinds. While Tesla saw a 91% jump in February sales, defying an overall market slowdown, broader trends indicate a cooling of the initial boom.
Tenant sales performance is now a critical factor for landlords, closely tied to rental income growth. S&P Global Ratings notes that strong tenant sales can lead to positive rental reversions and higher occupancy rates.
“We believe the ability of mall operators to swiftly optimise tenant mix to cater to spender needs is key to protecting them from a rental drop,” said Edward Chan, a Greater China property analyst at S&P Global Ratings.
The rise of robotics companies taking retail space is a particularly notable trend. Unitree Robotics, for example, has opened stores showcasing its humanoid robots, a sign of growing consumer interest in advanced technology. This shift highlights a broader move towards experiential retail, where consumers seek engagement and entertainment alongside purchases.
China is also rapidly expanding its electric vehicle infrastructure, with plans to have 5,000 bidirectional charging stations – utilizing vehicle-to-grid technology – among its 28 million total charging points by 2027. This expansion, alongside road trips like one recently documented between Shanghai and Beijing by EV enthusiasts, demonstrates continued investment in the EV sector despite the current retail shift.