smart has an ambitious plan for 2025, but may need a lot of help in Malaysia to grow.
smart, the Mercedes-Benz and Geely joint venture, enters 2025 with ambitious expansion plans despite intensifying market competition. Following a 7% sales growth in 2024 with nearly 130,000 units sold globally, the brand aims to penetrate over 10 new markets while facing unique regional challenges, particularly in Southeast Asia.
Global Expansion Strategy
The company’s three-pronged approach focuses on China, Europe, and emerging markets, with an established presence across 31 countries. Smart’s retail network encompasses 210 stores in China and 316 sales outlets in Europe, leveraging Mercedes-Benz’s “shop-in-shop” model. The brand’s portfolio expansion includes the Smart #1, #3, and the newly launched #5 premium mid-size SUV.
Market Positioning Challenges
In Malaysia, Smart faces an interesting predicament as Pro-Net, its local distributor, also handles Proton’s new e.Mas7 electric vehicle. This situation highlights Smart’s need to differentiate its premium positioning from more affordable local alternatives. The e.Mas7’s strong initial reception, with 3,000 bookings, indicates growing competition in emerging markets where price sensitivity plays a crucial role.
By the way, smart EV owners can get a 30% discount on public charging fees from 25th January 2025 to 3rd February 2025 using the Hello smart app at selected charging stations.
Technology and Brand Identity
Under the “open your mind” brand claim, Smart emphasizes three core pillars: inspirational co-creation, contemporary premium, and mindful technology. The company continues investing in intelligent cabin and autonomous driving technologies, maintaining in-house development while collaborating with industry partners to establish technological advantages.
Future Outlook
As Smart celebrates its 5-year anniversary in Europe, the brand faces several critical challenges:
- Maintaining premium positioning while competing with more affordable local EV alternatives
- Balancing global expansion with operational efficiency
- Developing market-specific strategies to address regional competition
- Continuing technological innovation while managing costs
Smart’s success in 2025 will largely depend on its ability to execute its expansion strategy while maintaining its premium market position and technological edge in an increasingly competitive global EV landscape.
