Chinese cars increase market share in Israel in 2025

Chinese vehicle brands continued to gradually increase their market share in Israel’s vehicle market between January and April 2025, the Ministry of Transport Licensing Bureau reports. In the first four months of 2025, 30,693 Chinese manufactured were delivered, up 24.4% from the corresponding period last year, and representing 26.3% of all the vehicles delivered – the biggest market share to date. In contrast, the market share of Korean-made vehicles, which previously led sales in the Israeli car market with over 33% of sales, has shrunk to about 20%.

The data shows that since the beginning of the year, 116,658 new vehicles have been delivered in Israel, up 9% from the corresponding period last year, when the Gaza fighting was intensive. According to industry estimates, in the first four months of 2025, about 14,000 vehicles were registered through “self-registration” in the name of importers and included in deliveries, after not having been sold within a year of their production date (zero kilometers). When offsetting this figure, this is a decrease of about 2% in actual deliveries so far this year to paying customers.

Electric vehicle sector in decline

Electric vehicle deliveries in the first four months of the year have declined. In January-April 2025, 19,129 electric vehicles were delivered, down 29% from the corresponding period last year and a market share of 16.4% of all deliveries, compared with about 22% in the same period of 2024.

Chinese-made vehicles still dominate this sector with a share of over 65% of deliveries, but the distribution is not uniform and it is possible to notice a decline in the power of old brands alongside significant “barriers to entry” such as price competition and market saturation, which some of the new brands that have entered the market in recent months encounter, despite significant promotions and sales efforts.

BYD, which led deliveries in the sector last year, took ninth place in deliveries in the first four months after a 47% decline Geely, also a former market leader, is in 22nd place in deliveries with a 52% decline. Both brands are currently waiting for new electric models.

The situation is even more difficult for younger brands in Israel. Dongfeng delivered 691 vehicles in the first three months; Leapmotor delivered 477 vehicles; Changan’s Deepal, launched at the end of 2024, delivered only 290 vehicles in the first three months despite significant inventories in Israel; while the Hongqi delivered only 252 units.

China penetrates Israel’s gasoline models market

In the segment of vehicles with internal combustion engines, including hybrids and plug-ins, the dominance of the “traditional” brands made in Korea, Japan and Europe continues, although here too the penetration of brands made in China is rapidly expanding. This is mainly due to the launch in Israel of new plug-in and hybrid models with aggressive pricing in the first four months of 2025.

Five of the ten brands that led sales in the first four months of the year were Chinese brands. Particularly notable is the jump of the Jaecoo brand of China’s Chery Group to sixth place with 5,041 deliveries, after not being present on the Israeli market in the corresponding period last year.

Chery’s Jaecoo brand, imported by Colmobil, and Chery itself, imported by Carasso Motors, combined is in third place in the overall delivery ranking in the first four months of 2025 – after Hyundai and Toyota. The group delivered 11,472 vehicles between January and April, up 215% from the same period last year.

Hyundai led deliveries in the market with 15,691 vehicles, up 15%. Two models of the Korean manufacturer, Kona and Elantra, took first and third place in deliveries in the first four months of the year. Toyota staged a respectable recovery with 14,627 deliveries, up 36% compared with the corresponding period of 2024.

Toyota survived the “loss” of two strategic models, most notably the Corolla sedan, which disappeared from the market following Erdogan’s embargo on vehicle exports from Turkey to Israel.

Skoda is the only European brand in the top ten, delivering 9,303 vehicles in the first four months, up 28% from the corresponding period last year.

Expectations for a year of losses

Sources in Israel’s vehicle industry estimate that if the stagnation in deliveries continues (the delivery rate is down compared with the corresponding period last year taking into account “self-registration” vehicles), 2025 will be one of the sector’s most difficult years ever. Car importers began the year with an inventory of over 100,000 vehicles, which have already been released from customs in order to get ahead of the tax increase at the beginning of 2025. These inventories, especially of electric vehicles, currently constitute a heavy financial burden on some importers.

The tough competition between traditional brands and Chinese brands and among the Chinese themselves also contributes to this. In Israel, there are currently about 50 active car brands with models between the price range of NIS 130,000 and NIS 270,000, where most deliveries are concentrated. This is an unprecedented figure for a developed country with European standards. In April 2025 alone, there were over 12 sales promotions for specific brands or models in car industry. A “flood” of vehicles can also be seen in the marketing channels of “zero kilometer” vehicles.

Published by Globes, Israel business news – en.globes.co.il – on May 5, 2025.

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