smart, which once flourished in the small car market, is now facing severe challenges due to declining sales. In an attempt to break through, smart had to change its strategy and launch larger models, hoping to gain market share through "bigness." However, will this transformation truly breathe new life into smart?

Looking back at smart's history, this brand jointly founded by Mercedes-Benz and Swiss company Swatch once captivated urban dwellers with its compact and unique models. The smart city coupe, with its tiny 2.5-meter body, became a nimble sprite navigating through the urban jungle. However, as consumer aesthetics and market demands evolved, smart's petite models gradually lost their appeal.

Facing market pressures, smart chose to partner with Geely Holding Group to form a joint venture, aiming to revitalize its brand image and product positioning. Nevertheless, this transformation did not swiftly translate into sales growth. On the contrary, smart's new models struggled in the fiercely competitive market.

Firstly, the launch of smart #1 failed to reverse the downward sales trend. Despite initial enthusiasm from fans upon its release, subsequent sales failed to sustain momentum. Compared to competitors in the same segment, smart #1 lacked distinct advantages in terms of configuration, power, and range, while commanding a relatively higher price. This prompted consumers to opt for more cost-effective alternatives.

Similarly, the introduction of smart #3 also failed to alter the situation. Despite improvements in size and space, sales remained unsatisfactory. Monthly sales over the past six months hovered in the triple digits, far below market expectations.

Third-party data reveals that from January to August this year, smart #1 and smart #3 sold only 13,400 and 4,598 units, respectively, in China. Given its domestic sales target of 50,000 to 60,000 units for the year, the likelihood of achieving this goal now appears slim.

Despite lackluster sales, smart has faced numerous complaints. On September 28, a disgruntled owner shared on a car quality website that their three-month-old smart #1 experienced powertrain issues, disrupting plans to drive during the National Day holiday starting from September 30. The after-sales service promised a repair by October 1 at the earliest and offered a daily compensation of 100 yuan for taxi rides. The owner expressed outrage, questioning, 'If my car breaks down during a self-drive holiday, ruining my entire trip, is a daily compensation of 100 yuan really sufficient?'

A complaint from another smart #1 owner further cast doubt on the vehicle's safety.

The owner recounted that on July 23, 2024, their vehicle collided with a metal guardrail, resulting in an axle break. Despite the impact centered on the right front side, involving the A-pillar, side member, crossbeam, and fender, neither the passenger airbag nor active safety features deployed.

To the owner's outrage, the 4S store's official representatives refused to investigate the cause of the anomaly or assess hidden damages, declining to provide backend data or loss assessment rules.

The owner also reported two powertrain malfunctions in January 2024 (both of which were repaired without clear explanations for the causes or remediation measures).

Other issues cited included discrepancies between marketing claims and reality, inconsistent and outdated vehicle manuals with erroneous data (from 2022), and gaps and errors in the owner's manual app (e.g., lack of LCC lane centering instructions; inaccurate ACC effective speed range). Additionally, the smartpilot assistance system experienced lane-keeping failures without in-vehicle alerts.

On September 29, the State Administration for Market Regulation announced that Jingling Automobile Sales (Nanning) Co., Ltd., acting on behalf of smart, had filed a recall plan in accordance with the Regulations on the Recall of Defective Automobile Products and its Implementing Measures. The recall affects 2,545 smart #1 electric vehicles produced between April 20 and May 30, 2024, and 971 smart #3 electric vehicles produced between April 20 and May 31, 2024, commencing on September 30, 2024.

Certain vehicles within the recall scope may have inadequate strength in the front seat belt height adjuster guide nut due to manufacturing issues. In extreme cases, this could lead to the front seat belt height adjuster failing to secure properly, compromising the restraint effect of the seat belt and posing a safety hazard.

Now, smart #5, the brand's new hope, has officially opened for presale. This mid-size SUV aims to captivate consumers with its larger size and luxurious amenities. However, navigating the fiercely competitive mid-size SUV market remains uncertain for smart #5.

From a market perspective, the mid-size SUV segment is already saturated, with major brands vying for a share. Models like Tesla Model Y, BYD Tang DM, and NIO ES6 dominate significant market shares, enjoying high brand recognition and sales volumes. As a relatively niche brand, smart faces an uphill battle to establish itself in this market.

Moreover, smart risks losing brand recognition during its transformation. Its established image of compactness and sophistication is deeply ingrained in consumers' minds. The sudden introduction of larger models may confuse and raise doubts among customers, further impacting sales performance as brand recognition wanes.

In conclusion, smart's transformation journey is fraught with challenges and uncertainties. While expanding into larger models aligns with market trends, it remains unclear whether this strategy will successfully reverse declining sales. To thrive in the fierce competition ahead, smart must prioritize product quality, cost-effectiveness, brand building, and marketing efforts.