The Smart brand, or smart as it is commonly known, was created in 1994 as a joint venture between Daimler Benz and Swiss watchmaker Swatch. The name, for those who do not know, is in fact derived from the union of Swatch, Mercedes-Benz and ART. In 1998, the car manufacturer was completely absorbed by Daimler-Benz and, in 2006, smart became a brand within Mercedes-Benz Cars.
The first model appeared on the road in 1998 and the brand immediately positioned itself as an 'intelligent' solution for urban mobility. The smart urban coupé was in fact the smallest real car (not a quadricycle) available in Europe (just 2,540 mm long).
The urban coupé was followed by other equally small versions: the cabriolet was introduced in 2000; the crossblade and roadster in 2003. Later, in 2004, the family was extended with the smart forfour, produced in collaboration with Mitsubishi. By the end of the 2000s, more than 1.3 million smart cars had been sold worldwide.
Landing in America
With the European public responding positively to this concept of mobility, smart began to extend its activities to other continents. After a good start in Japan, home of the kei-car, the brand began selling its small cars in the United States, where consumers have always preferred large cars. But it worked. In its first year in this market (2008), smart sold almost 25,000 units of the fortwo. The country has become the brand's third-largest market, behind Italy and Germany.
Global sales of the smart City-Coupé/fortwo by generation
However, as with the Fiat 500, the American party quickly came to an end. Two years later, the fortwo sold just 6,000 units, a figure that rose to 10,500 in 2014 with the introduction of the third generation. However, SUV and pick-up fever in the US never allowed this car to take off. In 2017, the brand sold just 3,000 units, then 1,300 in 2018 and 626 in 2019.
New rules in Europe
Smart's withdrawal from the US market signalled the start of a series of challenges the brand has had to face. With only two models, the fortwo and the forfour, sales began to decline. After peaking at 144,500 units in 2016, they fell dramatically. In 2019, smart sold 107,100 units, almost 90% of them in Europe.
Global sales of the smart brand
Emissions regulations and electrification targets set by the European Union have made things even more difficult, given that these are small cars. In the meantime, management insisted that it would never produce an SUV, and the debut in China followed the same pattern as in the US.
Sales got off to a good start, peaking at 23,000 units in 2017, only to come to a screeching halt in 2020. The lack of appeal outside Europe and the urgent need to electrify the range forced Mercedes to find a partner to keep the brand alive.
The Chinese turn
China's Geely came to the rescue by buying a 50% stake in Mercedes, and that's when the brand was completely turned on its head. Geely's first move was to abandon the idea that smart couldn't produce SUVs. What's more, by producing all its cars in China, the brand could easily afford to expand its range with the introduction of all-electric models.
Sales of the latest generation of smart cars. The three largest markets in 2023 and the first half of 2024 - graphic chart
The smart #1, a large B-SUV, arrived in 2022 and a year later it was the turn of the #3, a C saloon. Last week, the brand presented the #5, a mid-size SUV that completely abandons the DNA that the public has been used to since 1998.
smart #1
smart #3
smart #5
Is it wise to change the brand's positioning and enter segments that are already saturated? On the other hand, could the brand survive without China? We'll find out in the years to come.
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