First seen in September 2010 at the Paris Motor Show, the smart 'escooter' concept was a cautious toe in the water for Mercedes-Benz city car sub-brand.
The tiny 4kW smart escooter has a top speed of just 45km/h and was conceived for European countries where motorists don't need a license to ride low-power vehicles, and the two-wheeled vehicle has been green-lit for production by parent company Mercedes-Benz.
The concept scooter will reach production by 2014, representing the first motorised two-wheeler from Benz since the early 1900s, and sees the German company join its prestige rivals in the motorcycle arena.
BMW has been building motorcycles since 1923 and Audi recently acquired exotic Italian motorcycle brand Ducati, making the escooter Daimler's tentative first step into the wider motorcycle world.
The German luxury car has had a keen interest in the two-wheeled transport, as Mercedes-Benz performance arm AMG had a cosy relationship with Ducati before Audi swooped in with its take-over.
Dr Joachim Schmidt, the head of global sales and marketing at Mercedes-Benz Cars, recently made the announcement that the smart escooter will reach production in 2014.
"The decision in favour of the escooter has been made. With this step, we are adding a further important component to our smart mobility concept for urban mobility in the future," he said.
Mercedes-Benz Australia's Corporate Communications Manager, Jerry Stamoulis, told motoring.com.au the escooter is being considered for the local market, and would be part of a reinvigorated smart brand.
"We're definitely looking at it. We're looking to lift the smart brand in Australia and we'd like to see motorbikes as part of that."
Stamoulis said 'Benz is investigating whether the escooter would be technically feasible in Australia, given its meagre maximum speed and charging technology.
Details of the plug-in electric scooter have not been revealed, but the concept version contained a number of features usually only found on high-end motorcycles, such as heated handlebars, a blind spot detection system and even an airbag.
One element that would increase the escooter's appeal among technophiles is the mooted iPhone integration system. The smart escooter concept could be paired with an iPhone that acts as the remote 'key' and allows users to prime various functions remotely and check the battery charge from afar. Once docked, the phone acts as the instrument cluster with speedometer, battery gauge and other readouts.