Volvo sells 20 percent of its cars in China, so the market is a lucrative one - and the Chinese government recently announced incentives for makers of low- and zero-emission cars.
Also driving the Polestar 1 price tag is the fact that much of the vehicle is built from expensive carbon fiber.
"We recognize the Chinese market's potential for electric vehicles, and Polestar has the strength to take advantage of these opportunities", explained Wu.
The Polestar 1's high price mostly reflects the car's hybrid performance, as its electric motor and internal combustion engine produce a combined output of about 600 horsepower and 737 pound-feet of torque.
At the Beijing Auto Show, Volvo Cars will visually reinforce the company's position as an industry leader in electrification with all cars on display plugged-in.
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Volvo is also displaying its three SUVs, which are available worldwide - the XC40, pictured, XC60 and XC90, the former of which is making its first appearance as a T5 PHEV.
From start of production in Ghent in November 2017, the XC40 was available with a D4 diesel or a T5 gasoline four-cylinder Drive-E powertrain.
The decision follows last month's announcement that the 01 will be produced at Volvo's factory in Ghent, Belgium, which is also home to the XC40.
The early success of the XC40 supports Volvo Cars' expectations of strong demand for its new small SUV in China.
China is Volvo Cars' largest individual market and this year delivered a 23.3% first quarter sales increase, contributing to the company's first-quarter global sales growth of 14%. The company announced previous year that every auto in its range would be electrified by 2020.