The relaunch of the Smart brand in South Africa sees luxury car manufacturer Mercedes-Benz South Africa (MBSA) venture into some new territory – that of the entry-level buyer.

“The new-look Smart will be a game-changer for us,” says MBSA co-CEO and MBSA Cars executive director Florian Seidler.

The Smart has, of course, been available in South Africa for a number of years, but not as a budget car.

In 2003, local buyers could get their hands on a new Smart Fortwo (the two-seater model) at a starting price of R119 000. Today this would be cheap for an entry-level vehicle, but consider the fact that the 2003 price on the least expensive Volkswagen CitiGolf model was almost half that of the Smart, at R66 270.

Introduced at a 2016 starting price of R174 900, it is clear that MBSA has changed its thinking on the city car.

Why so?

Seidler notes that MBSA previously sold the Smart “at Mercedes-Benz prices”.

A lower price point, however, enables young, funky buyers to “grow up” in the Mercedes-Benz brand and one day replace their Smart with a three-pointed star.

“We are going for conquest customers, for customers we have never had before. We have never had and never will have an entry-level vehicle in Mercedes-Benz, but a sub-brand can do the job for us,” says Seidler.

When mulling the relaunch of the Smart brand in South Africa, MBSA considered all the potential segments where the vehicle could find a home – also looking at the competitors in those segments – finally selecting the entry-level market.

The entry-level market has experienced a boom in recent years, owing to a faltering local economy that has continued to eat into consumers’ spending power, and a drive from a large part of the population to gain mobility.

But how is it possible to sell the Smart in South Africa – imported from France and most definitely not positioned as an entry-level vehicle in Europe – at a price below R200 000?

Seidler says MBSA has “cut some costs” on the European-specced vehicle to enable the “unique” South African product positioning.

“We came up with a special product at a localised price.”

The base model includes standard equipment such as an audio system, electric windows, cruise control, central locking, automatic start-stop, airbags (including head, thorax and knee bags), air-conditioning and electronic stability control.

However, certain colour body panels, lane-keeping assist, park assist, heated seats and a rear camera are, for example, optional extras.

Seidler adds that the pricing of the Smart is not an introductory offer, but part of a long-term MBSA strategy.

Smart previously sold through five centres in South Africa, at around 100 units a year.

Now, however, Seidler expects a “significant increase in numbers”, especially as all 60 Mercedes-Benz dealerships will park the Smart on their showroom floors.

When considering the biggest challenge to selling the new-look Smart in South Africa, Seidler says it is the fact that the sub-brand “is not alive” in the domestic market.

MBSA believes most sales will derive from the 3.49-m-long four-seater Smart Forfour, rather than the 2.69-m-long Fortwo, with its turning circle of 6.95 m.

The Smart is most likely to compete with the likes of the Volkswagen Up and the Toyota Aygo.

The Smart Fortwo and Forfour manual models are launched with a one-litre, naturally aspirated 52 kW, 91 Nm engine, with fuel consumption pegged between 4.1 l/100 km, and 4.2 l/100 km.

The starting price on the Fortwo is R174 900 and on the Forfour R179 900.

All smart models come standard with a three-year/60 000 km service plan.

July should see the introduction of a 66 kW automatic Forfour, with a 88 kW Brabus (sports) edition to follow later in the year.