Navigating the Future: TomTom and smart’s Strategic Alliance in the EV Era

The automotive industry is undergoing a seismic shift toward electrification and connectivity, with premium electric vehicle (EV) brands vying to deliver seamless, high-tech driving experiences. TomTom, the Dutch navigation and mapping pioneer, and smart, the all-electric subsidiary of Mercedes-Benz, have forged a partnership that underscores this transformation. Their collaboration, announced in April 2025, integrates TomTom’s real-time traffic data, EV-specific services, and advanced driver assistance systems (ADAS) into smart’s global in-vehicle infotainment systems. This union not only positions smart to dominate the premium mid-size EV SUV segment but also highlights TomTom’s growing role as a critical enabler of the smart mobility ecosystem.

The Strategic Value of Real-Time Data and EV Optimization

The partnership’s core strength lies in its fusion of TomTom’s proprietary data and smart’s electric architecture. For drivers, the benefits are immediate: real-time traffic alerts, dynamic route planning for optimal energy use, and ADAS maps that comply with stringent European safety standards. TomTom’s EV services, which include charging station availability and consumption predictions, address a critical pain point for EV owners—range anxiety. This is particularly valuable as Europe’s charging infrastructure expands and governments tighten emissions regulations.

Smart’s Global CTO Yang Jun emphasized that the integration aligns with the brand’s “China-Europe, dual home” strategy, enabling seamless navigation across global markets. Meanwhile, TomTom’s SVP Sales Benoit Joly noted the partnership’s broader significance: “High-precision maps and real-time data are the backbone of autonomous and connected driving.”

Market Dynamics and Competitive Landscape

The EV market is poised for exponential growth, with BloombergNEF projecting global sales to reach 35 million units annually by 2030, up from 10 million in 2022. In this context, partnerships like TomTom-smart exemplify the industry’s shift toward vertically integrated ecosystems. Competitors such as Tesla, BMW, and Volkswagen are also investing heavily in in-house navigation and software solutions, but TomTom’s third-party neutrality and global data scale offer unique advantages.

TomTom’s existing contracts with over 40 automakers—including Toyota, Volkswagen, and Hyundai—provide a robust revenue base. However, its stock (TTOM.AS) has lagged behind peers like HERE Technologies (owned by BMW, Audi, and Intel) amid concerns over rising competition from automakers’ in-house mapping teams. The smart partnership could reposition TomTom as a “go-to” partner for premium EV brands, potentially driving a rebound in its valuation.

Risks and Opportunities for Investors

The alliance carries risks. Over-reliance on automakers’ purchasing power exposes TomTom to sector-specific downturns, such as a potential EV demand slowdown. Additionally, the EU’s regulatory push for standardized charging networks and open in-car software platforms (e.g., the Digital Services Act) could disrupt proprietary solutions like TomTom’s.

Yet the opportunities are compelling. TomTom’s EV services alone could generate €500 million in annual revenue by 2027, assuming a 10% penetration rate in the 5 million EVs sold annually in Europe. For smart, the partnership reinforces its premium positioning in the fast-growing SUV segment, where it competes with Tesla’s Model Y and Polestar 3.

Conclusion: A Pivotal Moment for Mobility Innovation

The TomTom-smart partnership is a microcosm of the automotive industry’s evolution. By combining TomTom’s data prowess with smart’s electric vision, the alliance addresses both functional (range anxiety) and emotional (premium experience) needs of drivers. With EV adoption accelerating—22% of new car sales in Europe were electric in Q1 2025, up from 10% in 2022—the timing is advantageous.

For investors, TomTom represents a leveraged play on the EV revolution, though its success hinges on maintaining its technological edge and diversifying revenue streams. Meanwhile, smart’s transition to a premium EV brand, supported by strategic tech alliances, positions it to capture a growing share of the €150 billion global SUV market. As urban mobility becomes smarter and cleaner, partnerships like this will define the winners in the decade ahead.