Smart #3 Reviews

In 2025 branding means way more than a hot iron mark scorched into a steer’s backside.It’s about a brand’s personality, reputation and your interactions with it. What it says about you. What it delivers. How it makes you feel. A visual identity, a design style… and a million other things.   And there are automotive brands in the Australian new-car market that have strategically built solid brand equity over many decades.Current market leader, Toyota began dipping its corporate toe into global export waters by shipping cars here in the late 1950s. And other Japanese makers like Honda, Mazda and Nissan followed it in conquering initial hesitancy by steadily investing in strong retail networks, pushing product improvement and focusing on a positive customer experience.Ford has built its global brand around everything from the Model T and its revolutionary assembly line to pumped up muscle cars and victory at Le Mans. While here it embedded itself in the local landscape via a manufacturing presence spanning close to a century and regular victory at Mount Panorama.And more recently, relative newcomers like Hyundai and Kia have moved rapidly from cheap and (mostly) cheerful to innovators that repositioned the concept of value and quality in the local market.All of which led to large pockets of ‘rusted on’ brand loyalty. The concept of ‘Ford and Holden families’ started to diminish from the moment the latter departed the scene in 2020 (if not before), but Toyota’s reputation for value, durability and affordable ownership has seen it maintain a legion of never-say-die fans.Same for Ford, Mazda, Mitsubishi and others. But I'd argue a turning point was when, after an initial false start through a private importer in 2013, MG set up as a direct subsidiary in 2017.Great Wall had landed as the first Chinese car brand in the Aussie market in 2009, but MG 2.0 was different. Even if its ‘Since 1924’ positioning stretched credulity, its products were better than expected and pricing was ultra sharp.Sharp enough to encourage budget-focused new-car buyers, even used-car prospects, to give the brand a go.With the introduction of new-generation products in the early 2020s sales took off like a rocket, and it’s here that my ‘That’s a good idea’ theory kicks in.I reckon executives at rival Chinese car brands, keeping an eye on MG’s increasing success Down Under, all had the same ‘good idea’ at the same time. Namely, let’s get into Australia and grab a piece of that action. Hence the subsequent arrival of Chery in 2023, itself a factory-backed restart after an initial import-distribution arrangement broke down back in 2011. Followed by the flood gates opening, with BYD, Deepal, Geely, a ramped up GWM, JAC, LDV, Leapmotor, Smart, Jaecoo, XPeng and Zeekr all jumping in with Aion, Avatar, Jetour, Lynk & Co, Skyworth and others waiting in the wings.Doesn’t matter which category you’re talking about - white goods, sporting equipment, hi-fi - if one fresh competitor enters a mature market, it’s likely to be met with reluctance, even contempt by existing brand loyalists.But if near enough to 20 newcomers blaze into market at the same time, clearly something seismic is going on and it feels like you’d be missing a trick if you didn’t at least investigate the rapidly changing competitive landscape.Give them the benefit of 20/20 hindsight as well as a time machine and it’s not certain all the new brands above would currently be making an Aussie entrance.But multiple triggers have been pulled with retail network deals done, head office staff recruited, parts warehousing set up, service and sales training completed and marketing campaigns launched. So, in a mature market, early movers like MG, Chery and GWM have the advantage and more recent arrivals will need to find a way to win over buyers… fast. And it’s a fair bet the ever-impactful lever marked price will be pulled on a regular basis.Some of the newcomers as well as more than a few existing legacy brands will be forced into a price war. Like it or not, loyalty comes under pressure when the incentive is enticing enough and with a cut-price cage fight likely to take place sooner rather than later not everyone will leave the octagon alive.Stand by for new-car buyers tempted en masse into ‘unbeatable deals’ that mean brand loyalties will be stretched beyond breaking point. The shake out from this looming war of attrition will be huge. 

Smart Automobile, now a joint-venture between Mercedes-Benz and China's Geely, has launched a new Brabus performance version of its upcoming #5 mid-size EV SUV.

The rapid and seemingly unstoppable expansion of Chinese carmakers is something to behold.But is it too far-fetched to think all cars will be Chinese within the next 20 years? Or is it naive not to see it as a strong possibility?For a long time I’ve thought the emergence of new Chinese cars in Australia and globally was the natural progression of the car industry. New brands morph from alternative fledgling brands to mature and established ones. We saw this with Japanese brands such as Toyota, Mazda, Mitsubishi and Nissan which gained popularity in the 1960s and ’70s before becoming established go-to brands in the 1980s and ’90s as they fought homegrown heroes Ford and Holden for space in Australia's driveways. And it stayed that way until the first decade of the 2000s ticked over.Holden and Ford’s ranges and sales shrank giving way to the Koreans who filled the gap with Hyundai and Kia which have climbed high into the top 10 thanks to an excellent range of SUVs and EVs.They’re now marching towards the only brands that stand in their way - Mitsubishi, Ford, Mazda and Toyota - which, by the way, have about three EVs between them.And given another five years Kia and Hyundai may have been able to topple Toyota from number one. But it might be too late for that. The presence of a large and fast-growing force is creating major uncertainty for the established brands in the Australian market - the rise and rise of Chinese brands. At the end of 2024 there were 12 Chinese brands operating in Australia and this year we’re expecting at least another seven to arrive. To put that in perspective we currently have a total of 50 car brands in Australia and nine are Japanese. By the end of 2025 the Chinese tally could easily be 20 brands or 30 per cent of Australia's brand make up.Several Chinese brands have been in Australia for years and have already done the hard yards. It took MG a couple of attempts to find a foothold but it was the seventh best-selling brand in 2024, while GWM came in at 10th. LDV is further down but still sold more than 16,000 vehicles here last year.The newer Chinese arrivals show huge promise with most of them offering affordable electric vehicles and plug-in hybrids when the established brands have only a handful among them, usually at higher prices.BYD, Zeekr, Leapmotor, Geely, Deepal, XPeng, Smart, JAC, Aion, Chery and Jaecoo will spend 2025 launching a multitude of new vehicles here. BYD will be one to watch having sold more cars here last year than Mercedes-Benz and it will likely enter the top 10 best sellers next year. Geely, which is the ‘Volkswagen of China’ in terms of its size and how many brands it owns, is another to watch.Chinese car manufacturers' speed of production, the development of new platforms and technology, the low cost of batteries, availability of electronics and the breakthroughs being made in charging systems, plus the sheer amount of money and Chinese government support behind them make competition almost impossible for many other brands.It’s almost certain that some established brands will bow out of Australia, unable to compete with Chinese brands. It’s also feasible that within the next decade more than half the Australian market could be made up of Chinese brands. And surely some Chinese brands won’t be able to cut it here and leave, too.Who could survive? Well, time has shown that even the mighty like Holden have fallen if they don’t make the cars people want to buy. The sheer brute force of Chinese brands being able to offer what people want quickly and at a low price, and at an always improving tech level could be too difficult for many other brands to fight off.In an extreme scenario this could lead to a 100 per cent Chinese brand market within 15 years. Sounds far fetched? Well they’re a third of the way there already.  

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If you think Chinese car brands can't teach Toyota, Ford or GM anything about making vehicles better, think again!

Despite a backwards step in 2024, Chinese cars are on-track to bounce back in 2025 as a flood of new brands enter the market.While brands like BYD, MG, GWM and Chery have already established themselves, a new wave is on the way to challenge Japan as Australia’s biggest car importer.By the end of 2024 there were 12 Chinese brands officially in the Australian market and at least two more have announced plans for entry into our market in 2025 with more expected to follow. Japan, by contrast, only has nine brands in our local market but still comfortably leads the overall production with nearly 379,000 vehicles from Japan sold here in 2024.That compares to 272,139 from Thailand and 176,159 from China. Those figures don’t account for a brand’s national base but rather simply where they are built, so it includes certain Tesla, Volvo and other models from different brands.But while Japan and Thailand still lead the way as the most popular countries for new-car production, China appears on-course to overtake them in the not-too-distant future at the current rate.With the likes of Zeekr, Leapmotor, Deepal, XPeng, Geely, Smart, JAC, GAC/Aion, Jaecoo and more set to grow in 2025, plus expanded product lines from BYD, MG, GWM and Chery, the approximate 96,000 sales difference between China and Thailand could shrink dramatically this year.The industry is well aware of the rapid growth of the Chinese car industry in Australia, with Toyota Australia’s Head of Sales, Marketing and Franchise Operations, Sean Hanley, commenting this week: “The Australian new-car market has always been one of the most competitive in the world, and 2025 will be no different. We expect to see more new brands and models, which means more choice and even stronger competition, which, in the end, is great for the consumer.“By all reports, there could be a dozen new Chinese car companies arriving in Australia by the end of next year. In the past five years, they have taken more than 13 percentage points of market share from established brands.”Hanley was quick to point out that while these new brands have taken significant market share, Toyota remains the clear leader.However, that growth must come from somewhere and that will force brands across the market to react to this new array of rivals. This is likely to result in increased competition for Australian buyers at a time when cost-of-living pressures are expected to cool the market after record sales in 2024.

Just days after reports emerged that Geely-owned brand Zeekr plans on introducing two plug-in hybrid (PHEV) models in 2025, its sister brand Smart appears to be following its lead.

Many so-called “all-new” models aren’t all that new. In fact, a sizeable chunk are reskinned versions of what came before, with fresh sheetmetal over the same general hard points.

Ask Toyota — the world’s biggest carmaker — and two brands are enough.Yes, Toyota makes trucks under the Hino brand and also has the minnow Daihatsu in its stable, but it is essentially Toyota and Lexus and that’s it.Part of Toyota’s success in Australia is it sells a vehicle for everyone, and every occasion.Lexus rarely steps on its big brother’s toes, with a clear premium divide separating the two.Now Chinese behemoth, Geely, is gearing up for an assault on the Australian market.It has a strong toehold Down Under with Volvo and Polestar, but after that is where things get murky.It also has Lotus, Smart, Zeekr and its home brand Geely to forge ahead with in 2025.Volvo and Polestar have clearly positioned themselves in the luxury space, but Geely, Smart and Zeekr are chasing the same mainstream buyers.All three are electric only, and are launching with semi-premium compact and mid-size SUVs.They are essentially the same vehicle underneath a slightly different styled skin. But electric cars all have similar looks, honed for aerodynamics, which gives them all a same-same-ness despite a tweaked non-grille or headlight treatment.The brands all share motors, batteries and tech features, which helps amortise costs, but can be a challenge when attempting to stand out from the crowd.Geely recently merged two of its brands, Zeekr and Lynk and Co, to reduce internal competition.According to Reuters, Geely boss Gui Shengyue said the integration would make the company more competitive."If we don't integrate , we must face issues such as internal competition ... and redundant investments in many aspects such as R&D, sales, which is stupid," he said according to Reuters.Geely isn’t alone in crowding its own space.The huge Volkswagen Group has Volkswagen, Skoda and newcomer Cupra all lobbing cars in a similar price bracket.The big difference is only Cupra is new, the VW Group isn’t attempting to launch three new brands in the space of 12 months that sell effectively the same cars.It’ll be a challenge for these three Chinese brands to stand out.They also face a wave of competition following them across the sea. GAC, Aion, Xpeng, Skywell, Leapmotor and Deepal are all planning to launch or have launched into the same market space as their compatriots.Not to mention established brands such as BYD, Chery, GWM and MG already with a group of loyal buyers and brand cache.It is starting to feel like China’s car industry is replacing the building industry responsible for towering ghost towns as its biggest economic driver and they need to find export markets quickly to keep the production lines open and the steel mills firing.Australia is a prime target with its lack of tariffs and relatively close proximity to the Chinese mainland.There are storm clouds brewing on the edge of the Australia new car market, though.Electric cars still only make up about 8.3 per cent of new cars bought through the first 11 months of 2024. More EVs have found homes this year than last, but less than 10 per cent is still relatively niche.Private buyers — generally the ones snapping up EVs — are stepping away from new car purchases at an alarming rate.Double digit drops in private buyers in each of the past four months compared to the year before is a worrying trend according to the head of the Federal Chamber of Automotive Industries, Tony Weber.“This is a disturbing trend which illustrates how cost of living pressures are impacting households,” he said.Only time will tell if these brands can make it work, but it’ll be a tough slog in 2025.