Smart Europe CEO Dirk Adelmann expects the upcoming launch of the Smart #5 model in May to significantly boost the global sales of the joint venture between Mercedes-Benz and Geely. With the introduction of the #5, alongside existing models #1 and #3, Adelmann predicts annual sales could reach 120,000 vehicles worldwide by 2025.
Smart recorded global sales of approximately 65,000 vehicles in 2024, nearly doubling its 2023 figures. European deliveries accounted for around 20,000 units, with 9,322 new registrations in Germany, according to Automobilwoche. Adelmann anticipates German sales could double to nearly 20,000 units following the launch of the larger, all-electric SUV #5, a departure in size for the traditionally compact brand.
The expansion into new markets such as Australia, Malaysia, Thailand, and Hong Kong has been key to Smart’s revised strategy, following challenges in its core markets of Europe and China. Germany saw declining EV sales after subsidies were withdrawn at the end of 2023, while China’s EV sector has grown more competitive amid a price war. “There is very strong competition in China, which was somewhat different five years ago,” Adelmann said, predicting market consolidation where only a few major players, including Geely, BYD, and SAIC, are expected to remain dominant.
Looking ahead, Smart is diversifying its model portfolio. While the #5 incorporates 800-volt technology, the company is also exploring the development of a smaller two-seater vehicle. However, Adelmann noted that progress on a potential Fortwo successor is hindered by ongoing trade negotiations between Europe and China.
In Europe, Smart plans to maintain a strategic price gap between its offerings and those of Mercedes-Benz, a key shareholder. This positioning will ensure differentiation as Smart continues to expand its presence in showrooms shared with Mercedes across the region.
