The Chinese Automotive Conquest: Dominating a Southeast Asian Market with a 70% Market Share, Despite Tax Hikes.

Recent data released by the Israel Auto Importers Association reveals that Chinese auto brands have topped Israel’s auto market in the first half of 2024, propelling China to become Israel’s leading vehicle supplier.

Specifically, in the first six months, Chinese auto companies sold a total of 34,601 fuel and electric vehicles in Israel. This was followed by South Korean and Japanese brands, which sold 27,187 and 23,185 vehicles, respectively.

Notably, Chinese electric vehicles made a particularly strong impact, capturing 68.31% of Israel’s electric vehicle market share during the same period, with 26,803 units sold. Among the Chinese brands, BYD emerged as the best-selling brand, with six models selling a total of 10,178 units. The BYD Atto 3 stood out as the best-selling model in Israel in the first half of 2024, achieving sales of 7,265 units. In early January, it was reported that Chinese electric vehicles also led the market in Israel in 2023.

This marks a significant growth compared to previous years. In 2023, Chinese electric vehicles reached a total sales volume of 29,402 units in Israel, more than doubling the sales volume from 2022 and accounting for approximately 61% of Israel’s electric vehicle market share. These figures indicate substantial consumer demand and market momentum for electric vehicles in this country.

The surge in Chinese auto sales in Israel can be attributed to several factors, including Chinese automakers actively expanding their global presence, offering a diverse range of high-quality electric and fuel vehicles at competitive prices. This expansion comes despite the recent wave of tariffs imposed by nations worldwide. Additionally, growing consumer interest in electric vehicles, environmental concerns, and government incentives have further bolstered the popularity of Chinese electric vehicles.

The success of BYD, particularly with the Atto 3 model, underscores the increasing demand for and acceptance of Chinese automotive technology. As this trend continues, Chinese auto brands are likely to maintain their strong position in the Israeli auto market in the near future.

Israel’s Ministry of Energy forecasts in an official projection that approximately 1.3 million automobiles, equivalent to 30% of the total vehicles in Israel, will be electric by 2030. This represents a significant increase from the current 70,000 electric cars, which account for less than 2%. By 2050, the Ministry of Energy expects all 6 million cars on the road to be electric.

This anticipated growth in the number of electric cars is expected despite an increase in taxes on electric vehicles. The tax rate for electric cars is projected to rise to 35% in 2024, up from 20% in 2023. Additionally, the country aims for approximately 35% of buses to be electric by 2030.

According to CNC