Core Insights - Smart's sales have been declining for two consecutive years, with a projected 2024 sales volume of 33,400 units, representing a nearly 20% decrease from 2023 [4] - The launch of the "Year of the Horse" edition of the EQ fortwo did not generate the expected consumer interest, with significant inventory remaining unsold [5][12] - Smart's strategy to expand its model lineup has not resonated with the market, as evidenced by the low sales figures for its new models [8][9] Sales Performance - Smart's sales volume for 2024 is expected to drop to 33,400 units, with a further decline to 30,800 units in 2025 [4] - The EQ fortwo "Year of the Horse" edition saw only 20 units sold in January at a specific dealership, with 1,000 units still in inventory as of February 11 [5] - The EQ fortwo accounted for 67.7% of Smart's total sales in 2025, with projected sales of 20,800 units [4] Market Position and Strategy - Smart, a joint venture between Mercedes-Benz and Geely, has struggled to maintain its unique brand identity in the high-end small car market [9] - The brand's transition from fuel vehicles to electric models has not provided a competitive edge, as its technology is based on Geely's architecture [9] - Smart plans to launch two new models, the EQ fortwo and EQ6, in 2026 to better balance mainstream market presence and brand identity [12][13] Competitive Landscape - The electric vehicle market is becoming increasingly competitive, with brands like NIO's Firefly achieving significant sales success [11][12] - Firefly's pricing strategy and brand trust have contributed to its rapid growth, contrasting with Smart's struggles [12] - The overall market for electric vehicles saw a decline in sales, with January 2023 figures showing a drop of 18.9% year-on-year [13]