The Smart model is currently not attractive for dealers according to the report, with hopes placed on Model #2
Image: Smart
According to Automobilwoche, selling Smart vehicles is currently a loss-making business for many dealers. The main reason cited is the low sales volume. In Germany, only 4700 vehicles were sold in 2025. Although the figure rose to 4200 units by mid-year, overall sales remain too low.
The economic situation for dealers appears to be poor, as many businesses are currently in the red due to this brand. A manager at a major auto group described Smart as not being a very attractive business model to an industry portal, stating that the low production volumes were insufficient to cover the fixed costs associated with complex processes and structures. Achieving economic profitability would require roughly twice as many vehicles.
Criticism focuses especially on the current model strategy. A Smart partner with Mercedes background believes, according to the report, that moving away from the niche market is a problem, as the current portfolio of compact and mid-size SUVs misses target customers. Mercedes should not have discontinued the ForTwo but rather continued it as an electric model.
The Electric Microcar #2 is Set to Revitalize Business
The two-seater microcar ForTwo and the four-door compact car ForFour were discontinued in their last available electric versions because Mercedes-Benz wanted to completely rebuild the brand with a new 50-percent stake from its Chinese partner Geely. About five years ago, development and production were moved to the People’s Republic of China for this purpose. In Germany, only design work remains. The current lineup in Germany consists of the compact SUV #1, the slightly larger SUV coupe #3, and the mid-size SUV #5, all of which are purely electric. In China, there is also the partially electric large sedan #6.
The industry’s hope now lies in a revival of the ForTwo under the name Smart #2 (article image). A dealer sees this new two-seater, set to launch soon, as a breakthrough and expects high sales volumes at an estimated price of around 20,000 euros. The brand itself is also “very confident” that the #2 will be “an important driver of growth” in Germany.
Another obstacle, aside from the models themselves, is the distribution structure according to Automobilwoche. In the past, Mercedes dealers could sell Smart models as supplements to their main vehicles, which worked well. With separate systems in place now, only exclusively certified Smart dealers are allowed to offer these vehicles, and there are few of them. As a result, a major dealer is calling for Mercedes dealers to be allowed to sell these cars again.
The brand emphasizes that Smart, as an independent brand, has “its own system ecosystem and a modern omnichannel distribution model.” This model along with the partner network are key components of positive development. However, they remain open to feedback for optimizing offerings and processes.
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About the author
Thomas Langenbucher is an expert in electromobility with professional experience in the automotive and financial industries. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions on ecomento.de. Learn more.
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