The market for “premium compact cars,” once considered niche, is now heating up.
Firefly is the brand that everyone is talking about the most these days. Another well-known brand, MINI, also announced at its new product launch in April that 2025 will be a year of increased efforts, with more new products to be launched and a stronger market push.
When it comes to “premium compact cars,” we have to mention smart.
Facing the increasingly hot market and more intense competition, what does smart plan to do?
At a group interview during the Shanghai Auto Show, Yang Jun, the Chief Technology Officer (CTO) of smart Global, and Yi Han, the Chief Executive Officer (CEO) of smart China Marketing, repeatedly mentioned the phrase “taking small steps quickly,” which aptly summarizes smart’s development strategy.
smart also has its own approach in product design, market promotion, and other aspects.
Creating Its Own Unique Features
Yi Han believes that whether in marketing or product design, smart must have its own unique characteristics.
Yi Han talked about the core of the smart brand—creating inspiration together with users. Simply put, smart is a “veteran” in cross – industry collaboration in the automotive industry and has achieved good results. After entering the electric vehicle era, smart has launched many co – branded models based on models such as the smart #1 , which have been well received in the market.
This has made smart realize that cross – industry collaboration is an important means of brand development.
Yang Jun added that smart’s cross – industry collaboration is not just about marketing activities, but also deeper cooperation with other brands in product development. He cited examples of collaborations with BRABUS (a well – known automotive modification brand) and Sennheiser (a well – known audio brand), saying that everyone takes these collaborations very seriously, invests a lot of energy, and truly innovates together.
Another way smart creates its own unique features is by vigorously promoting its new model, the smart #5 .
On the surface, the smart #5 seems to go against smart’s previous style. It is a mid – size SUV that competes with cars like the Tesla Model Y and no longer falls into the category of “premium compact cars.”
Yang Jun explained that this car is also designed to create differentiation.
“In terms of styling direction, we still decided to retain some of the personality and characteristics that the smart brand should have,” such as a contour similar to a “box,” but also integrating the design features of the smart family, with an overall shape that is “square with roundness and round with squareness.”
Yang Jun also acknowledged that this unique design may not be liked by everyone, but the smart team believes in its own vision and aesthetics, thinking that such a design will “become more appealing the more you look at it.”
Sticking to Its Own Path
Brands that can stand firm in the fiercely competitive market all have something they stick to, and smart is no exception.
“Our products may have different forms of expression, but the core remains consistent.”
Yi Han said, citing the examples of the smart #1 and the smart #5 . These two cars are different in size, and the gender ratio of their buyers is also different, but people who buy smart cars have one thing in common: they all pursue a high – quality life and have similar ideas and values.
Based on this, Yi Han said that smart’s brand promotion always revolves around the core concepts of “fashionable and high – end, creating inspiration together, and warm – hearted technology.” In terms of products, smart often says, “Don’t think of smart as small.”
In other words, although smart cars are not large in size, they pay great attention to the practicality of the interior space.
This statement also has another meaning. Smart does not want its cars to excel in only one aspect, but hopes to combine design, technology, and intelligent experience well.
Taking the smart #5 displayed at the Shanghai Auto Show as an example, Yi Han demonstrated the all – wheel – drive version and the BRABUS high – performance version on site. He wanted to convey that if users like powerful and high – performance cars, smart can also meet their needs.
Yang Jun also emphasized the “taking small steps quickly” product update strategy.
This is reflected in many aspects, such as upgrading smart functions for vehicles and adjusting the product range.
smart has equipped the smart #5 with a full range of driving – assist functions, and the materials and detail design inside the car will also be continuously improved based on user feedback. The launch of the large – size smart #5 is also the result of the “taking small steps quickly” strategy. The positive market feedback shows that smart has found the right direction.
“Facing competitors, we will accelerate the pace of model updates, quickly make up for shortcomings, and achieve overall product evolution,” Yang Jun said.
Regarding sticking to the brand direction, Yang Jun also mentioned smart’s product development. He said that smart will not pursue the speed of “making a car in ten months,” but will learn from the R & D systems of Mercedes – Benz and Geely to make cars in a more rigorous and reliable way.
After all, smart wants to build itself into a brand with a deep heritage, so as to be more competitive in the fiercely competitive market with continuous price wars.
Yi Han said, “In such a market environment, I think brand value is the most core touchstone.” He cited the examples of Mercedes – Benz and BMW, which can continuously launch new models while maintaining a good reputation in the long term. Obviously, smart’s ultimate goal is to become a big brand like Mercedes – Benz and BMW.
Not Limiting Its Own Development
Although in the past people always associated smart with “premium compact cars,” it can be heard from Yang Jun and Yi Han that smart has not set limits for itself internally.
smart can make small cars as well as large cars; it can attract female customers as well as male customers; its style can be lively and agile, as well as high – performance and hard – core.
As long as there is a demand from users, smart can provide the corresponding products. Yi Han revealed that the laser radar of the smart #5 is an optional configuration, but more than 70% of users choose to install it, which shows that people recognize smart’s driving – assist functions.
smart’s active adaptation to the market has already achieved some results. Yi Han said that in the past, the majority of smart buyers were female, with more than 70% of the buyers of the smart #1 being female.
With the launch of the smart #5, smart has found that the proportion of male users has reached a new high.
However, smart has also found that there are still shortcomings in its publicity. Many customers did not know until they arrived at the 4S store that smart also has such a large model as the smart #5.
In response to this, Yi Han proposed three future directions for smart’s marketing.
First, focus on promoting the smart #5 and explore more publicity methods with partners;
Second, make precise use of online platforms for promotion;
Third, strengthen the publicity of offline stores to solve the problem of insufficient store exposure.
In the future, people’s impression of smart should also change, and it can no longer be defined only as a “premium compact car.”
By maintaining its personality and being willing to change, will smart become a new force in the Chinese automotive market? Let’s wait and see.
（End）
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