Geely and Mercedes-Benz's joint venture smart relaunched the #1 crossover in China on the evening of August 6, 2026, positioning the update as a "new luxury AI agile SUV." The brand says the car carries more than 200 changes over the outgoing model, with 63 features it calls class-leading and 20 it calls class-exclusive.smart #1 535 Ultra rear cabin, priced from 169,900 CNY, or about $25,200, at launch (smart)The new-generation #1 comes in two trims, 535 Max and 535 Ultra, with market guide prices of 152,900 CNY (c. $22,700) and 172,900 CNY (c. $25,600). Both are being offered at limited-time prices of 149,900 CNY (c. $22,200) and 169,900 CNY (c. $25,200) through a package smart says is worth more than 25,000 CNY (c. $3,700) in combined benefits. The Ultra trim adds a lidar-based driver-assist sensor set, a head-up display and heated, ventilated massage seats over the Max. The #1 was smart's first electric SUV under the Geely-Mercedes partnership, arriving in China in 2022 on Geely's Sustainable Experience Architecture, with Mercedes-Benz responsible for the exterior and interior design. It has since lost ground to newer 800V rivals, including the related Volvo EX30 and Zeekr X. The brand delivered 5,350 units of the #1 in China during the first half of 2026, down 47.6% year over year.Visually, the update is modest. The car adds Blue Gold and White Gold paint options alongside a returning Corona Gold roof treatment, along with a lit D-pillar logo and a "Styled by Mercedes-Benz" badge that smart says are unique in its class. Door handles switch to a semi-hidden design to meet new domestic regulations on flush handles, and the front fenders gain cameras to support the upgraded driver-assist hardware. The 19-inch alloy wheels and rear spoiler carry over largely unchanged from the outgoing model. The biggest changes are underneath. The #1 moves to an 800V silicon-carbide platform built around a 61.52 kWh battery capable of 6C charging, allowing a 10-to-80% top-up in 12 minutes at a peak DC input of 370 kW. smart calls the pack its "Shendun Jinzhuan" battery and says it is built to meet China's newest mandatory battery-safety standard. A single rear motor, part of Geely's new 16-in-1 integrated drive unit, produces 245 kW (333 PS) and reaches a claimed drivetrain efficiency of 93.8%. CLTC range is rated at 535 km (332 miles).smart #1 in White Gold with the returning Corona Gold roof treatment (smart)Driver-assist hardware jumps as well. The range-topping Ultra trim adds a roof-mounted lidar unit to a sensor suite of 31 devices, paired with a single Nvidia Orin Y chip rated at 200 TOPS. smart's G-Pilot H5 system, marketed domestically as Qianli Haohang H5, runs on an updated G-ASD 4.0 model and is intended to support navigation-based driver assistance on both city streets and highways. The same hardware powers automated parking in narrow mechanical spaces and unmarked lots, plus "step-out" parking that lets the driver exit before the car finishes parking itself.Ride and handling were tuned jointly by smart and Mercedes-Benz engineers, with a new CST comfort-braking system meant to reduce nose-dive under braking while smoothing out regenerative deceleration. Ground clearance is rated at 154 mm, which smart says allows light off-pavement use in addition to city driving. Inside, the #1 gets a 15.4-inch, 2.5K-resolution touchscreen running a version of smart OS built on Flyme Auto, powered by a 4-nanometer chip. smart says the system supports natural-language voice commands covering multi-stop routing, and an AI-controlled climate system that adjusts cabin temperature and airflow based on conditions inside and outside the car. Twin accessory mounts on either side of the dashboard, capable of powering phone holders or action cameras at up to 72 watts, are new to this generation. Cargo capacity grows from 313 liters to 976 liters with the rear seats folded.smart #1 cargo area with the rear seats folded and panoramic sunroof visible (smart)Comfort upgrades include 12-layer "SPA" front seats with 24 massage combinations, a Sennheiser-branded sound system and 256-color interior ambient lighting. The #1 measures 4,270 mm long, 1,822 mm wide and 1,636 mm tall on a 2,750 mm wheelbase. smart says the body meets both Chinese and Euro NCAP five-star crash standards, built around a cabin that is 84% steel-aluminum by weight, and adds 19 new active-safety features including automatic emergency braking, rear cross-traffic alert and braking, tire-blowout stability control and driver-incapacitation assistance. smart global CEO Tong Xiangbei and global CMO Kang Yi led the launch event, alongside actress and TV host Patty Hou. Tong said the #1 has represented the benchmark for the luxury small-car segment since its debut four years ago and that the new generation is meant to extend that position through updated electronics, charging and driving assistance rather than a body redesign.The #1's illuminated D-pillar logo and "All New #1" badge, features smart calls unique in its class (smart)The event closed with a promotional segment teasing the smart #2, a two-seat electric model, in which six cities (Shanghai, Melbourne, Buenos Aires, Paris, Hong Kong and Berlin) were shown in sequence "racing" to demand the car's arrival. smart said a global street-art campaign tied to the #2 has already rolled out in multiple markets, ahead of the model's planned global debut at the Paris Motor Show in October 2026.The #1 now competes in a crowded 150,000-to-170,000 CNY segment against larger, similarly equipped electric crossovers, a gap smart is betting its design pedigree and cabin technology can offset. Whether buyers accept a compact footprint over the added space rivals offer will determine if the update reverses the model's declining domestic sales.Conversion rate: 1 USD = 6.75 CNY as of August 6, 2026.