Smart has seen its sales in Europe halved by two in 2025
- Contrary to Mercedes and Geely 's forecasts, sales of the Smart brand (owned 50% by Mercedes and 50% by Geely) are currently much lower than when the brand only offered the Fortwo in European markets. They are also significantly lower than the targets set by the two carmakers (250,000 sales per year).
- The three latest Smart models #1, #3, #5 have failed to gain traction in either the European or Chinese markets. In 2025, their sales failed to take off in China (32,948 units in the first nine months of 2025 compared to 33,619 in the first nine months of 2024), and their sales were even halved in Europe (9,130 units in the first nine months of 2025 compared to 19,889 in the first nine months of 2024).
- Mercedes and Geely have agreed that the project to launch new electric Smart cars in higher segments has not lived up to its promises and that the launch of a cheaper model, such as the replacement for the electric Fortwo (#2), remains crucial for the future of the brand.
- As a result, Mercedes had to change its plans regarding the replacement of the Mercedes A-Class with a similarly sized Smart #4. The German carmaker has decided to replace its A-Class with a new Mercedes A-Class (likely in 2028) because a Smart #4 would have had less sales potential than a new Mercedes A-Class. The brand is therefore not abandoning the C-segment, contrary to what it announced a few months ago.