Smart focus for LSH Auto
BY COBEY BARTELS | 9th Sep 2024
SMART returned to Australia this month through established Mercedes-Benz distributor LSH Auto, which will only sell the Smart range at its Brisbane, Melbourne and Sydney Mercedes-Benz dealerships with no imminent plans to expand the network beyond just three sites.
However, LSH Auto’s local leadership does not see this a limiting factor when selling the all-electric #1 and #3 compact crossovers in this market, which have found 100,000 customers around the world since the brand relaunched in 2022.
Speaking with GoAuto at the Australian Smart launch in Brisbane LSH Auto managing director John Good said the brand’s local footprint in three state capitals “basically has 90 per cent of the population anyway”.
“If there is interest outside of those areas, we can certainly handle that,” he said.
When asked about long-term plans for the brand, Mr Good said it was too early to share but confirmed that LSH will consider expanding its Smart footprint as demand grows.
“There is always a bigger picture, but at the moment it’s a little early to say,” he said.
“What I can definitely say and confirm is the brand centre in Brisbane will be the flagship operation, and equally in Melbourne.
“If the volume, and when the volume continues to grow to a bigger stage, we’ll look into what we can do on a bigger scale.”
Now the product of a 50:50 joint venture between Mercedes-Benz and giant Chinese car-maker Geely that was inked in 2019, Smart vehicles are designed in Germany and manufactured in China with open supply lines to Australia should demand soar.
The deal between LSH Auto and Smart was forged just three months ago, with the rapid arrival indicating the reborn brand’s eagerness to play in the Australian electric vehicle market.
“We've got our aspirations, but it is very early stages,” added Mr Good.
“But what I can say is that we are very confident in the brand and the opportunities that the brand's going to bring to the market.”
Supply is strong too, Mr Good told GoAuto, with stock already on the ground and factory-to-port delivery times of around two months.
“We’re going to hold a certain amount of stock in each state, and we have stock on the ground now with more coming in September, then if you want a specific colour or order we’re talking about eight to 10 weeks from factory to port,” he said.
Overseas, Smart confirmed it has delivered more than 100,000 units of the new models, with a presence in 30 countries and regions.
While Australia is an important market for the brand moving forward, its focus is firmly placed on China, which Smart global chief marketing officer Mandy Zhang confirmed is the largest market so far.
“China would be, yes, followed by Europe,” she said, confirming a 60:40 percentage split between the two markets.
When asked if China is likely to remain the largest market for Smart into the future, Ms Zhang said she hopes “China would at least account for 50 per cent.”
Smart used the Australian launch of its #1 and #3 models to also premiere its incoming #5 model to the world, and the brand confirmed it is in talks with LSH Auto to introduce the mid-size SUV in the second half of next year.
Talking with GoAuto shortly after the reveal, Ms Zhang said it is likely to be the brand’s best-selling vehicle based on the popularity of mid-size SUVs globally.
“We definitely have volume expectation for #5, because it is a mid-size SUV and just by the size of the segment it should be already bigger than #1 and #3,” Ms Zhang told GoAuto.
“Purely from volume, I have really strong expectations for #5.”
When exactly it will make its way to Australia and at what price point is all a bit of a mystery, with Ms Zhang offering limited clarity.
“To be honest, we don’t know yet,” she said.
“We want to have a serious discussion with LSH here. We definitely want to hear feedback from the market and LSH, and eventually find a sweet spot.”
LSH Auto confirmed it is pushing to bring the #5 to Australia, but said the focus is on growing sales of the #1 and #3 in the meantime.
“It’s still really early days, but we’ll be in close contact with Smart to see what can be done,” Mr Good said.
“But the focus is really on #1 and #3 right now.”
