Smart returns to Australia with Chinese EVs

Modern icon relaunches in Australia with a new generation of electric vehicles for green-minded Australian motorists.

Australia’s newest car company is backed by the world’s oldest car manufacturer.

Smart relaunched in Australia today with a pair of electric cars sold through Mercedes-Benz showrooms.

The new models are a long way from the original Smart cars presented as miniature European runabouts.

2024 Smart #1 and #3 electric cars. Photo: Mark Horsburgh

The brand has returned to Australia with spacious and powerful four-door electric cars priced from $54,900 plus on-road costs.

Built in China through a joint venture between Benz and Geely, parent company to brands such as Volvo and Polestar, the Smart cars share key hardware with a handful of models including Volvo’s EX30.

Hong Kong-based dealer giant LSH Auto will import Smart to Australia and sell the cars through its Mercedes dealerships in Brisbane, Melbourne and Sydney – but not rival Benz dealerships owned by other businesses.

The ground floor of Mercedes-Benz Brisbane with the historic car display.

John Good, managing director of LSH Auto Australia, said his group’s international ties to Benz should bring peace of mind to wary customers.

“We’re a very solid player in the industry,” he said.

“We’re actually the world’s largest Mercedes Benz operation globally, roughly every one in eight Mercedes Benz built is sold through our group.

LSH Auto Australia managing director John Good outside Mercedes Benz's Breakfast Creek dealership.

“We operate out of just over 340 cities around the globe – in seven markets – employing close to 25,000 people across those cities. Average turnover, for last year in Australian dollars was around $27 billion.”

Chinese EV brands are flocking to Australia in the face of heavy tariffs in North America and Europe intended to protect struggling domestic car manufacturers.

Australia could become a key market forbrands such as Smart, which will host dozens of international motoring reporters at the global debut of its new #5 – pronounced “hashtag five” – in Byron Bay on Wednesday night.

Smart ForTwo – Note: this is NOT the electric, but they basically look the same

Mr Good said LSH “can see a lot of potential with the brand” and its future in Australia.

“We’re also, equally, the world’s largest dealer for Smart automobiles – last year we sold just over 10,000 Smarts globally,” he said.

“We have a lot of excitement and passion for reigniting the brand here.”

Electric cars represent about 8 per cent of car sales in Australia. The rate of growth has stalled, prompting manufacturers to engage in cutthroat discounting as new models arrive.

The link to Mercedes could be Smart’s unique selling point in an electric vehicle market set to be flooded with unfamiliar names such as Zeekr, Xpeng and Leapmotor.

Mr Good said it “remains to be seen” how those brands will fare in Australia.

He believes the “shadow endorsement” of Mercedes, and Smart’s presence in Benz showrooms, will give it a point of difference.

“You have the endorsement of Mercedes in terms of the overall design. The quality will attract some customers,” he said.

“But we’re also very clear that there is strong differentiation between the brands as well.

LSH spokesman John Kananghinis said Smart is in it for the long haul.

2024 Smart #1 electric car. Photo: Mark Horsburgh

“The reality is that some of these brands coming in are quite immature,” he said.

“Having mature representation and mature partners, like Geely has with Mercedes, is going to make a huge difference.”

Originally published as Smart returns to Australia with Chinese EVs