In the dynamic landscape of the Malaysian electric vehicle (EV) market, smart is taking the
fight directly to the established giant, Tesla.
It’s strange to think that just a decade ago Tesla was the underdog, but things have certainly changed. Musk’s revolutionary EV brand forced the automotive industry to flip on its head overnight and today it totally dominates in terms of market cap and market share. The good news is that this has prompted a lot of competition from existing and new players. One brand that’s both a NEW and EXISTING player is smart, and here’s why it could end up being a small threat to Tesla in Malaysia.
Before we go further, we should explain why smart is both an existing and new player. The brand has been around for about two decades now, and it has been sold in Malaysia before. However, the smart #1 we see on sale today is a new animal altogether. The brand was reinvented with a huge investment from Geely and the newly launched smart under PRO-NET arrives without the constraints of the old automotive world.
You’ll see that in the way they approach sales and aftersales. You have the advantages of newer brand, giving customers a direct app platform namely ‘Hello smart’ to purchase and engage with the community through their smartphone. However, you also have a tie-up with a long-established Malaysian premium car dealership chain, so customers can get a personal touch from a sales assistant should they prefer a more traditional car buying experience. What’s more, smart’s aftersales network is more established nationwide and has experience with how things work in Malaysia which could be another reason buyers would feel more secure going with them over Tesla.
The smart #1 itself is in a pretty unique position compared to Tesla’s line-up. Tesla now sells the aging Model Y crossover and the brand-new Model 3 at a time when customers are showing a strong preference for crossovers. The smart #1 is technically a newer vehicle than the Model Y and it’s also a crossover. There will be quite a few customers who aren’t prepared to give up that SUV-like shape just to have the newer Model 3.
The design is also a huge factor. The smart #1 is a modern looking vehicle inside and out, plus you get the prestigious touch of the Mercedes Benz styling department. Contrasting Tesla’s minimalist aesthetics, the #1 adopts a more amicable design, boasting gentle curves and a welcoming, neutral face. Step inside, and you’ll find an interior that mirrors a modern living space, seamlessly blending cleanliness with tasteful textures and colours.
While Tesla flexes its muscles with cost efficiency and market dominance, smart takes a different approach to capture attention. The #1 gives you more physical buttons and familiar controls where Tesla’s vehicles are more prepared to bury controls under layers of digital menus. Here too, we think many customers will prefer smart’s approach. There are also EV buyers who just prefer Apple CarPlay and Android Auto – these are unavailable on Tesla models while being built into the smart #1.
Another area where smart has an advantage for now is in its charging infrastructure. They’ve partnered with Petronas-related Gentari, which already has over 600 charging points nationwide. Tesla has ambitions to expand their Supercharger network here, but that will take some time to materialise.
All that said, Tesla still has a leg up on pricing, range and in some cases, value. However, smart #1 distinguishes itself with an enticing blend of fun-packed features and exceptional value for money, setting a new standard in the market. Moreover, its reputation for having the best-integrated ecosystem further solidifies its position as a compelling alternative. It will be an uphill battle for smart to convince customers to look beyond these factors at long term ownership considerations. That being said, they’re one of the few brands in Malaysia that have struck the same balance of tech, pricing and premium brand value as Tesla.
