Smart Recalls 18,000 Vehicles in China Over Fire Risk

Smart is recalling 18,217 vehicles in China due to a fire risk with the batteries in its #1 and #3 models, produced between 2022 and 2023. At the same time, the brand is dumping its electric SUVs in Europe with discounts of up to €10,000 to revive stalled sales.

"The recall will begin on March 17, 2026 to eliminate the risk of thermal runaway caused by manufacturing tolerances in the high-voltage batteries" — Chinese State Administration for Market Regulation (SAMR)

A Massive Recall in China for Battery Issues

Smart is recalling 18,217 vehicles in China due to a fire risk related to the batteries. The operation concerns 16,072 Smart #1 and 2,145 Smart #3 models produced between 2022 and 2023. The official recall will begin on March 17, 2026.

The identified problem involves a risk of "thermal runaway" caused by manufacturing tolerances in the high-voltage batteries. Smart will offer inspections or remote diagnostics, with the possibility of completely replacing faulty batteries. A cloud-based alert system will also warn drivers in case of overheating.

Smart Slashes Prices in the Face of European Commercial Failure

In Europe, Smart is trying to save its catastrophic sales with aggressive discounts. Barely 13,000 vehicles were distributed in Europe in 2025. The brand is now offering the Smart #1 starting at €25,815 (instead of €33,815) and the #3 from €29,315.

These reductions can reach €10,000 depending on the model. The recent #5 benefits from a €7,500 discount, lowering its starting price to €39,100. These cuts aim to compensate for the absence of an ecological bonus, as Smarts are produced in China.

Why Can't Smart Succeed Anymore?

The shift from micro-cars to electric SUVs hasn't convinced. Smart had managed to carve out a niche with the Fortwo, but the new SUV strategy is missing its target. The Mercedes-Geely joint venture can no longer find its European customers.

Competition is fierce in the compact electric SUV segment. Faced with the Tesla Model Y, Volkswagen ID.4 or Hyundai Ioniq 5, Smarts struggle to differentiate themselves despite their original design.

Smart #1: Decent Performance but Just Enough Range

The entry-level Smart #1 develops 268 horsepower with a WLTP range of just 310 km. A modest performance compared to the competition, which often offers over 400 km of range in this price bracket.

Towards European Production to Avoid Tariffs?

Smart is considering moving production to Europe to escape the 28.8% tariffs imposed by Brussels on Chinese cars. The Volvo plant in Ghent, Belgium, could host the production of the #1 as early as the last quarter of 2027.

This relocation would allow regaining access to the ecological bonus and reducing costs. But will it arrive in time to save a brand that's already in serious trouble?

Does the Smart recall affect Europe?

No, this recall only concerns vehicles sold in China between 2022 and 2023. Smarts sold in Europe are not affected for the time being.

When will the Smart #1 be produced in Europe?

European production of the Smart #1 is being considered at the Volvo plant in