Chinese Cars Increase Market Share in Israel in 2025
Chinese vehicle brands have continued their steady rise in Israel's automotive market, reaching a record 26.3% market share in the first four months of 2025, according to recent data from the Ministry of Transport Licensing Bureau.
Between January and April 2025, 30,693 Chinese-manufactured vehicles were delivered in Israel, representing a 24.4% increase compared to the same period last year. This growth comes at the expense of Korean manufacturers, whose market share has shrunk from over 33% to about 20%.
Overall Market Performance
The total new vehicle deliveries in Israel for the first four months of 2025 reached 116,658 units, showing a 9% increase from the corresponding period in 2024, when the Gaza conflict was at its height. However, industry analysts note that approximately 14,000 of these vehicles were registered through "self-registration" by importers after not being sold within a year of production. When adjusting for this factor, actual deliveries to customers decreased by about 2%.
Electric Vehicle Segment Struggles
The electric vehicle (EV) sector in Israel is experiencing a notable decline. Deliveries in the first four months of 2025 fell by 29% compared to the same period in 2024, with EVs now representing 16.4% of the market, down from 22% last year.
Chinese manufacturers still dominate the EV sector with over 65% market share, but established brands are facing challenges:
- BYD, last year's market leader, fell to ninth place with a 47% decline in deliveries
- Geely dropped to 22nd place with a 52% decline
- Newer Chinese EV brands like Dongfeng, Leapmotor, Deepal, and Hongqi are struggling to gain traction despite significant marketing efforts
Chinese Brands Enter Gasoline Vehicle Market
While facing challenges in the EV sector, Chinese manufacturers are making significant inroads into Israel's traditional gasoline and hybrid vehicle market. Five of the top ten automotive brands in the first four months of 2025 were Chinese, with particularly strong performance from Chery Group:
- Jaecoo (Chery Group) jumped to sixth place with 5,041 deliveries
- Combined Chery brands delivered 11,472 vehicles, up 215% from the previous year
- This places Chery Group in third place overall, behind only Hyundai and Toyota
The Korean manufacturer Hyundai maintained its market leadership with 15,691 vehicles delivered (up 15%), while Toyota showed impressive recovery with 14,627 deliveries (up 36%) despite losing access to some strategic models due to export restrictions from Turkey.
Industry sources predict 2025 will be a difficult year for Israel's automotive sector, with importers carrying heavy inventory and facing intense competition in a market with approximately 50 active car brands.
Read the full article on Globes.