Smart, a joint venture between Mercedes-Benz and Geely, is reportedly shifting its strategy to include a plug-in hybrid (PHEV) option for its upcoming #5 SUV, alongside the all-electric version. The move reflects growing concerns over sales performance in key global markets, including China and Europe.
The decision, first reported by Autocar and confirmed by Smart representatives in China, highlights a departure from the brand’s all-electric focus since its relaunch. A Smart Europe spokesperson stated, “We see individual mobility powered by combustion engines and, in particular, with hybrid drives as a transitional technology towards purely electric driving. It is important to respond to the increasingly diverse demands and desires of customers.”
See also: Smart Europe Targets 120,000 Annual Sales by 2025 with New Model Launch

While technical details of the PHEV version remain unconfirmed, Autocar speculates it may adopt Geely’s ‘Thor’ hybrid drive system, featuring a 1.5-liter petrol engine paired with a 160 kW electric motor. The system, currently used in Geely’s Galaxy Starship 7, offers two battery options with ranges of up to 120 kilometers under the Chinese CLTC standard. However, compatibility between the Galaxy platform and the Smart #5’s PMA2+ architecture remains unclear.
Smart currently offers two electric models, the #1 and #3, and plans to expand its portfolio with the larger #5, introducing 800-volt technology to the lineup. The inclusion of a PHEV option aligns with market trends in China, where plug-in hybrid and range-extender vehicles have surged in popularity, despite overall growth in electric vehicle registrations.
See also: DeepRoute.ai Partners with smart to Advance Autonomous Driving Technologies

Smart Europe CEO Dirk Adelmann has expressed high expectations for the #5’s electric version, projecting a sales increase from 65,000 to 120,000 units.
However, he acknowledged the need for strategic adaptations in response to market developments in China and Europe and emphasized the importance of expanding into new markets to sustain growth.