Israeli Auto Market Sees Modest Growth Amid Surging Chinese Deliveries and Heavy Discounting

The Israeli Automobile Importers Association has released vehicle delivery data for the first half of 2025, showing a modest 3% year-over-year increase, with 159,566 vehicles delivered compared to 155,181 in H1 2024. But behind the headline figures lies a complex and somewhat distorted picture of the local car market.

According to industry estimates, more than 10% of all deliveries are self-registrations—vehicles technically "sold" to employees or companies owned by importers themselves. In addition, large quantities of Chinese vehicles now visible on dealership lots suggest many deliveries went to trade entities, not private customers.

Such practices, though legal, indicate that delivery data is no longer a clear reflection of real consumer demand. Massive end-of-month delivery pushes and routine fleet transactions—especially involving heavy discounting—further obscure the market’s true health.

Chinese Automakers Surge—Fueled by Discounts

Chinese carmakers, particularly Chery, Jaco, and BYD, continued to gain ground in Israel. Aggressive pricing appears to be the primary driver:

• Plug-in hybrids were sold to fleets with discounts reaching 25%.

• Electric vehicles saw discounts up to 30%, industry insiders report.

Notably, Chery ranked fifth with 10,925 deliveries, and Jaco sixth with 8,459. Combined, the Chery group delivered over 19,000 vehicles, which would place it third overall, ahead of Kia.

Hyundai Leads, But Toyota Retains Strong 

Despite the distorted delivery picture, Hyundai remains the market leader with 20,063 vehicles delivered, just ahead of Toyota, which posted 19,980 deliveries. However, the two brands show contrasting dynamics:

• Hyundai’s figures are boosted by fleet deals and self-registrations, with heavy discounts on several models.

• Toyota, by contrast, shows genuine consumer demand, with limited discounting and healthy retail sales.

Kia ranked third with 13,543 deliveries, though its performance was hampered by price increases on entry-level models. Skoda followed with 11,955 vehicles, supported by aggressive fleet incentives.

New Brands Struggle Despite Large Import 

Despite the arrival of numerous new brands in 2025, most failed to meet expectations. Importers had committed to large volumes—typically 1,500+ units per brand—but many now face unsold inventory:

• Dongfeng delivered 809 cars, some of which are stored in a shopping mall in Ra’anana.

• Maxus (two importers) – 604 units

• Deepal – 487 units

• Hongqi – 397 units

• JAC – 277 units

• Porsche – 207 units

According to one industry insider, “These are very weak figures that raise questions about the long-term viability of some of these new entries.”

Country of Origin: China Dominates

Looking at the countries of manufacture, China took the lead in H1 2025 with 45,803 units, followed by:

• South Korea – 31,155 units

• Japan – 24,962 units

However, these numbers are not brand-based, but rather reflect the manufacturing location, which can be misleading. For example, Korean brands like Kia produce many vehicles in Europe, while Chinese automakers manufacture exclusively in China.

 Inventory Pressure May Inflate Sales

As the second half of the year begins, car importers are under pressure to clear unsold 2024 models—especially Chinese vehicles—before they become officially outdated. This could lead to a spike in "sales" activity, particularly to fleet buyers, further distancing delivery figures from true consumer demand.