Smart, the automotive brand synonymous with compact urban mobility, is embarking on a significant strategic shift by reintroducing its beloved two-seater model. Historically known as the ForTwo, this reinvented city car will now carry the moniker '#2' and is anticipated to hit the market by the close of 2026. This initiative represents a clear pivot back to the brand's origins, focusing on ultra-compact vehicles after a period of expanding into larger car segments. The development and production of the '#2' highlight a deepening collaboration between Mercedes-Benz and Chinese automotive giant Geely, a partnership that has seen Smart's manufacturing base relocate to China. This move is poised to deliver a modern, all-electric solution designed specifically for the challenges and opportunities of urban environments.
The automotive landscape has seen a gradual shift away from the A-segment in many Western markets, with several manufacturers discontinuing their smallest models. However, Smart's commitment to reviving a dedicated urban two-seater, alongside new offerings from competitors like Volkswagen and Renault, suggests a renewed interest in this niche. The '#2' is not merely a rebadge; it represents a comprehensive redesign, incorporating a bespoke electric platform aimed at maximizing interior volume and battery capacity within its minimal dimensions. This new direction is a testament to the evolving demands for sustainable and efficient personal transport in densely populated areas, promising a blend of Smart's traditional agility with contemporary electric vehicle technology.
The Rebirth of an Urban Legend: Smart's #2
Smart is making a decisive return to its roots with the impending launch of the #2, a modern interpretation of its celebrated city car. This all-electric vehicle, set to debut in late 2026, signals a strategic redirection for the brand, which is now a joint venture between Mercedes-Benz and Geely. Unlike recent Smart models that have grown in size, the #2 is designed to be a quintessential urban two-seater, specifically engineered to navigate congested cityscapes with ease. Its development leverages a new, dedicated ultra-compact platform, which promises not only efficiency but also surprising interior spaciousness despite its minimal exterior footprint. The design language, shaped by Mercedes-Benz, ensures that the #2 will retain the distinctive quirky silhouette that defined its predecessors, while introducing sharper, more contemporary lines.
The return of a compact, purely electric Smart car addresses a growing demand for sustainable urban mobility solutions. With its production centralized in China, the #2 will initially target key markets in Europe and Asia, although a U.S. launch remains undecided. This strategic market focus reflects the unique requirements and infrastructure developments in these regions that favor smaller, electric vehicles. By committing to an all-electric powertrain and a purpose-built platform, Smart aims to overcome the range limitations of previous electric models, ensuring the #2 offers competitive performance and practicality for daily urban use. The brand's emphasis on maximizing interior space and incorporating robust battery technology within a compact form factor highlights a thoughtful approach to meeting future urban transportation needs, setting the stage for the #2 to redefine expectations for pint-sized electric vehicles.
Strategic Positioning and Market Outlook
Smart's introduction of the #2 comes at a pivotal moment in the automotive industry, where there's a noticeable, albeit niche, resurgence of interest in the A-segment, particularly for electric vehicles. While many traditional automakers have exited this category due to profitability concerns and a market preference for larger vehicles, Smart, with the backing of its joint venture partners, is reasserting its dominance in the compact car space. The #2 is poised to compete with new electric offerings from manufacturers like Volkswagen and Renault, both of whom are also exploring the lower end of the EV spectrum. This competitive landscape underscores the potential for a growing market for affordable, compact electric cars, driven by increasing urbanization and environmental consciousness.
The success of the Smart #2 will hinge significantly on its pricing strategy and its ability to deliver a compelling value proposition against upcoming rivals. With competitors like the Volkswagen ID.1 and a revived Renault Twingo EV expected to launch with aggressive pricing, the #2 must offer more than just its compact dimensions and Mercedes-designed aesthetics. Its ability to provide adequate range, a surprisingly spacious interior, and a strong urban appeal will be crucial. Furthermore, the decision to produce the vehicle in China aligns with global manufacturing trends, potentially allowing for competitive cost structures. As cities continue to grapple with congestion and pollution, the Smart #2 stands to capitalize on the demand for efficient, environmentally friendly, and easy-to-park vehicles, reinforcing Smart’s role as an innovator in urban mobility. The blend of its heritage, innovative design, and electric propulsion positions the #2 as a key player in the evolving landscape of city transportation.
The Return of the Urban Icon: Smart Reimagines City Travel
The Enduring Legacy of Smart's Pioneering City Car
For decades, Smart's identity has been intrinsically linked to its diminutive, egg-shaped city car, a vehicle universally recognized despite its formal names, City Coupe or Fortwo. This compact, rear-engined two-seater served as the brand's cornerstone from its inception in 1997, solidifying its place as a unique offering in urban transportation. The association was so profound that "Smart Car" became a common descriptor, highlighting the vehicle's iconic status and its deep integration into the public consciousness.
Shifting Gears: The Evolution of Smart's Product Strategy
In 2024, the original Smart car ceased production, marking a transition point for the company. Under new co-ownership between Geely and Mercedes, Smart diversified its portfolio, venturing into the electric vehicle market with larger, more generalized EV crossovers. These new models, surprisingly powerful for the brand's history, represented a departure from the compact design ethos that had previously been Smart's hallmark.
Reconnecting with Core Principles: The Dawn of the #2
The coming year will witness Smart's decisive return to its heritage with an all-electric two-seater city car, meticulously designed to echo the spirit of its renowned predecessor. Adopting Smart's contemporary naming convention, this new vehicle will be known as the #2, signifying a fresh chapter while honoring its roots. This strategic move underscores the brand's commitment to urban-centric mobility solutions in the electric era.
A Global Collaboration with a European Focus
The aesthetic development of the #2 is being spearheaded by Mercedes's design team, while manufacturing operations are based in China, overseen by Geely. Despite its global production footprint, Europe remains a pivotal market for the #2. Dirk Adelmann, Smart's European CEO, has emphasized the significance of this project, stating that the #2 will usher in a new era of personal urban transportation, particularly in iconic Smart cities such as Rome, London, and Paris.
Anticipating the Future: Design and Upcoming Models
Initial glimpses of the #2, revealed through shadowy teaser images, suggest a design that embraces the conventional two-box profile of the third-generation Fortwo, diverging from the distinctive sloped front of its earlier iterations. It is anticipated that the #2 will incorporate design elements from Smart's newer, larger models, including sleek LED lightbars that seamlessly connect the front and rear illumination. The full unveiling of the #2 is scheduled for the upcoming year, forming part of Smart's ambitious plan to launch three new electric vehicles within the next three years, potentially reigniting hopes for a new Roadster model as well.
The automotive landscape is witnessing a notable transformation, exemplified by Volvo's recent decision to discontinue the V90 luxury wagon. This move, which follows earlier speculation, confirms the V90's production halt by the end of the current month, marking the end of an era for this esteemed model without a direct replacement in sight. This shift reflects a broader industry trend where sport utility vehicles (SUVs) are increasingly eclipsing traditional wagon body styles in consumer popularity, prompting manufacturers like Volvo to re-evaluate their portfolios.
Volvo's leadership has been candid about the challenges facing wagons, with the CEO suggesting that the smaller V60 wagon might also face a similar fate in due course. Despite the historical appeal and practicality of wagons, their market share has dwindled as buyers migrate towards SUVs, which are often perceived to offer advantages such as easier entry and exit and more convenient cargo loading, despite potentially being heavier, less fuel-efficient, and more costly. Meanwhile, the S90 sedan, the V90's counterpart, will persist in certain Asian markets, notably China, while being globally succeeded by the electric ES90, a five-door liftback, further emphasizing the industry's pivot towards electrification and varied body types. Even the resurgence of the 'XC70' moniker for a rugged Volvo model surprisingly materializes as an SUV, not a wagon, solidifying this trend. Volvo posits that its XC60 SUV might be repositioned to cater to the segment traditionally served by wagons.
While the discontinuation of the V90 is a somber note for wagon aficionados, it highlights the dynamic nature of the automotive market, where consumer demand dictates product evolution. The prevailing popularity of SUVs, often fueled by marketing and perceived benefits, continues to reshape vehicle offerings. This transition, while challenging for some traditional segments, simultaneously opens avenues for innovation and adaptation within the industry, fostering a continuous cycle of change and progress. It serves as a reminder that industries, like societies, must evolve and adapt to new preferences and demands, turning challenges into opportunities for growth and innovation.