smart Establishes New Wholly Owned Subsidiary in Australia Formally establishes strategic collaboration with LSH Auto Australia to explore local market

smart Establishes New Wholly Owned Subsidiary in Australia Formally establishes strategic collaboration with LSH Auto Australia to explore local market

• smart continues to "Sprint to the Next Level" in 2024 with the announcement of a newly registered wholly owned subsidiary in Australia.
• smart will provide the Australian market with premium all-electric vehicle sales and after-sales services, together with a comprehensive selection of offerings.
• The Australian NEV market presents significant development potential for smart, who in sole collaboration with the LSH Auto Australia Group in Sydney, Melbourne, and Brisbane, will be catering specifically to local customer needs.
• The smart #1 and #3 are expected to launch in the Australian market in Q3 of 2024.

(May 27, 2024, Melbourne/Hangzhou) Demonstrating its steadfast plans for global business expansion in 2024, the new-premium intelligent all-electric auto brand, smart, today announced the establishment of a wholly owned subsidiary in Australia. smart will provide the Australian market with premium all-electric vehicle sales and after-sales services, together with a comprehensive selection of offerings. The move represents the brand's regional market debut, with the aim of fostering local business development. smart will officially collaborate with LSH Auto Australia, a division of the international Lei Shing Hong Group to expand its business opportunities across the cities of Sydney, Melbourne, and Brisbane. The initial model line-up will include the smart #1 and #3 which are expected to arrive in the Australian market during quarter 3 of 2024.

Ms. Mandy Zhang, Global CMO of smart, said: "smart will 'Sprint to the Next Level' this year, with steadfast plans for global business expansion. The Australian market holds significant potential for growth, and with LSH Auto Australia'sextensive local resources and expertise, we are excited to join hands. Together, we aim to promote the development of Australia's intelligent all-electric New EV market and deliver a premium mobility experience to local customers."

John Good, Managing Director of LSH Auto Australia said：" LSH Auto shares a long, favourable history with smart vehicles throughout the petrol vehicle era. Today, we are all very excited to extend our cooperation with smart in Australia and to continue this strong partnership. With our strong nationwide sales and service footprint coupled with our highly experienced team, from both the frontline and supporting functions, we are confident about co-creating a brand-new customer experience with smart, serving each customer at every touch point with excellence and uniqueness in-line with our joint company philosophies. We look forward to developing an exciting and successful all-electric smart future in the Australian market. "

The Australian NEV market is currently experiencing a period of rapid growth, with a limited selection of all-electric vehicle models available and a strong demand from customers. The Australian Government has introduced incentives such as tax exemptions and some State Governments have additional incentives in place as part of policy support for new energy vehicles. This offers significant potential for further market development.

Since the launch of its first product following the brand's comprehensive renewal in 2022, smart has delivered near 100,000 units globally. smart has continued to expand internationally, with market representation covering China, Europe, the Middle East, Southeast Asia, South Asia, Africa, Oceania, which has now grown to 24 countries and regions.

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^{About smart Automobile}

^{Since the birth of the brand in the 90s, smart has always maintained the vision of exploring the best solutions for future urban mobility. smart Automobile was officially established in 2019 with a forward-looking "China-Europe, dual home" global development strategy, and is committed to becoming a world-leading, new-premium, intelligent and all-electric auto brand.}

^{smart has completed a comprehensive renewal of its brand, product, and business model and has entered a new era of full-speed operations, accelerating the establishment of a global product development, sales and service management system. Engineering, research, and development for the new generation all-electric vehicle portfolio is led by the smart R&D team, with the Mercedes-Benz Global design team overseeing vehicle design. smart has now launched two all-electric SUV models, the smart #1 and smart #3, with deliveries underway across multiple markets in China and Europe and continued expansion into high-potential markets in Southeast Asia and the Middle East. From 2022 to 2025, smart will bring an all-new model to customers each year, further enriching the new generation all-electric product portfolio.}

^{About LSH Auto Australia}

^{LSH Auto Australia is part of the world's largest Mercedes-Benz dealer group and is Australia's leading Mercedes-Benz Dealer Group. The Group has as a broad geographical footprint spanning over 110 cities in 7 markets internationally.}