smart: Blending Design and Software to Lead the Electric Mobility Transformation

Dirk Adelmann, CEO of smart Europe GmbH, in conversation with Mubarak Moosa, Associate Partner, Frost & Sullivan.

At the recent IAA Mobility Expo 2025 in Munich, smart showcased how far the brand has traveled, from a beloved urban micro-car to a full-range electric vehicle (EV) lineup addressing multiple segments and lifestyles. In this Movers & Shakers conversation, Dirk Adelmann, CEO of smart Europe GmbH, reflects on smart’s brand promise, the Mercedes–Geely partnership, software updates, and award-winning design that’s reshaping expectations for electric mobility.

Developing EVs for Various Customer Segments

Mubarak Moosa: smart started as a niche city-car pioneer. With models now ranging from the upcoming #2 city car to the mid-size #5, how are you positioning the brand to serve a broader customer base?

Dirk Adelmann: Our brand promise is to offer an all-electric, truly sustainable choice in the entry segments. The difference today is that we’re doing this across the A, B, C, and D segments, not just one. We started in the A-segment with the Fortwo, and now we’re active in B, C, and D with models like the #1, #3, and #5, while returning to urban mobility with the upcoming #2. Together, these models form a cohesive, fully electric portfolio that meets a wide range of needs — from everyday city driving to family and lifestyle use. We’re still a young company, but we’ve reached the stage we always aspired to.

* A-Segment – City Cars/Mini Cars, B-Segment – Small Cars/Superminis, C-Segment – Compact Cars/Small Family Cars, D-Segment – Mid-Size/Family Cars

Competitive Differentiation Through Strategic Partnerships

Mubarak Moosa: Europe’s EV industry is intensely competitive, ranging from traditional European brands to fast-rising Chinese entrants. How does smart set itself apart in such a competitive environment?

Dirk Adelmann: Competing in the EV industry is like a decathlon; you need to perform well across many areas and excel in a few. On the traditional side, we draw on the strengths of our Mercedes-Benz heritage in design, driving dynamics, quality, and interior experience. For connectivity and software updates, we benefit greatly from our joint venture with Geely. This partnership gives us the best of both worlds, combining the precision of the west with the agility of the east, and it enables us to move quickly and deliver meaningful software progress alongside strong hardware.

Accelerating Software Innovation and Over-the-Air Evolution

Mubarak Moosa: Software has become central to the customer experience. How is smart keeping pace with this shift?

Dirk Adelmann: We have already delivered seven over-the-air (OTA) updates for the #1 and #3 within about two and a half years, and the #5, launched in May, is already receiving its first update. The goal is for customers to see their cars continuously improving with new features and refinements, all from their driveway, without ever needing a workshop visit.

Reinventing the Sales Experience in a Digital Era

Mubarak Moosa: Beyond product and software, smart has also changed how it reaches customers. What does that transformation look like?

Dirk Adelmann: When we relaunched in 2019, we not only redefined the brand and portfolio but also built a new retail strategy and moved to a direct sales model. That required conviction from a completely new team, but it positioned smart as a speedboat within the Mercedes–Geely ecosystem. We can test new ideas quickly, prove their value, and then allow successful elements to scale back to our parent organizations.

The Story Behind the Award-Winning #5

Mubarak Moosa: Congratulations on the 2025 Red Dot award in Product Design for the #5. What sets it apart?

Dirk Adelmann: Thank you. We are proud not only of the #5 but also of receiving recognition for the #1, #3, and #5. It is rare for an entire lineup to be celebrated. We gave our Mercedes-Benz design team real freedom on both the exterior and interior, which is evident in the bold, boxy stance of this D-segment EV. Our 800-volt DC charging technology and high-rate fast charging help balance efficiency and convenience, delivering a seamless ownership experience. The smart experience comes from the combined strengths of both our shareholders.

“We have the best of both worlds—East and West—so we can be outstanding in the new disciplines like connectivity and updateability while keeping the design and quality people expect.” — Dirk Adelmann

Scaling smart’s Electric Vision in 2026 and Beyond

Mubarak Moosa: Looking ahead, what are smart’s top priorities for the coming years?

Dirk Adelmann: Our focus is to continue expanding the lineup thoughtfully, accelerate our software development, and strengthen our ecosystem so customers experience a car that keeps improving over time. The goal is to make sustainable urban mobility desirable across Europe’s entry segments while maintaining the character and quality that define smart.