Another European car brand is to depart from Australia.

Local reports said the Smart ForTwo would soon be withdrawn from sale locally because Australians weren’t prepared to pay a premium for a city runabout.

Priced from A$18,990 drive-away, the Smart car costs almost as much as a Toyota Corolla but is half the size and only has two seats, noted.

The report said Australian sales have been in free fall since a peak in 2005; demand became so weak that vehicle orders moved to online only in June 2013.

Just 22 Smart cars have been sold so far this year in a market that is showing signs of recovery.

"We worked really hard to keep the Smart car but not enough Australians are buying it in the numbers we need to make it viable," Mercedes-Benz Australia spokesman David McCarthy told

"It’s regrettable, but it’s the way it is."

Over 4,400 Smart cars have been sold in Australia in the 12 years since 2003, including 296 roadsters from 2003 to 2006 and 585 four-door hatchbacks from 2004 to 2007.

To date, 3,517 of the more widely recognised Smart ForTwo cars have been sold in Australia over two model generations.

Mercedes-Benz told it would continue to offer service and parts for the Smart cars that have been sold in Australia and that it has a couple of months worth of unsold stock remaining.

The report noted that, ironically, the news of Smart’s demise in Australia comes after the company released a redesigned model in Europe that addresses the criticisms of the current car, and would likely find broader appeal thanks to its roomier cabin and more car-like driving dynamics.

General Motors axed the Opel brand last year after just 11 months though some if its cars will return badged as Holden.

In 2009 Cadillac aborted its launch in Australia at the 11th hour, after dealers had been appointed and cars had been imported, said.

There are more than 60 automotive brands competing for 1.1m annual sales in Australia compared to 38 marques in the USA and 46 in western Europe, both of which sell more than 15 times as many cars as Australia, noted.