The Smart Fortwo was launched in 1998 as a joint venture between Daimler and Swiss watchmaker Swatch. It was sold in Europe as the Smart City-Coupé before adopting the Fortwo name. The microcar’s two-seat layout and ultra-short body made it ideal for tight city streets, but it was initially viewed as a niche experiment rather than a mainstream option.

The second generation arrived in 2007 with a wider body and more engine choices, improving comfort and safety. The Smart Fortwo expanded into markets like the United States and Australia, where its compact size divided opinion. In 2014 the third generation was introduced, developed with Renault and sharing underpinnings with the Twingo. This version improved refinement and handling while offering manual or dual-clutch gearboxes.

Since 2019 the Smart Fortwo has been sold only as an electric vehicle in most markets. While discontinued in Australia, it continues in Europe under the Smart EQ Fortwo badge, serving as a specialist city car focused on zero-emissions driving.

The line-up currently starts at $5,060 for the Fortwo Coupe and ranges through to $8,470 for the range-topping Fortwo Cabrio.