Israel’s Car Market: A Strong Three-Quarter Run
The Israeli automotive market has wrapped three quarters with results that point to a robust year for several importers. From the start of the year through the third quarter, about 242,000 new cars have rolled onto Israeli roads, up 7% from the same period last year. As usual, this figure excludes buses, heavy trucks, two-wheeled vehicles, and cars that arrived via personal or parallel import. It also includes tens of thousands of “garaged” cars—registered to importers or their leasing customers after a year—though these vehicles are expected to eventually reach customers on Israeli roads. The bottom line remains straightforward: these sales reflect the actual vehicles on public roads in the country.
Cherry Rises to the Podium
In a season when the market’s growth is uneven across brands, Cherry’s group has been a standout. Cherry, along with its JAC brand (also under the Cherry umbrella), has doubled its sales versus last year, helping propel it into the top tier. The combined strength of Cherry and JAC places the Chinese group in the second-largest position in the market, right after the Hyundai-Kia duo. This marks a notable shift in the competitive landscape and underscores the growing influence of Chinese brands in Israel, alongside continued strength from Korean makers.
Brand Ranking and Key Movers
Traditionally, Toyota remains the market leader, but Hyundai’s growth has outpaced the leader’s pace this year, lifting it to second place. Kia has ceded third place to Cherry, reshuffling the top of the chart. The Cherry group, bolstered by JAC, now stands as the second-largest brand family, with the Hyundai-Kia coalition occupying the first position. Other Chinese brands continuing to perform well include BYD, which narrowed its earlier declines, and MG, which keeps climbing. Classic favorites such as Skoda, Mazda, and Seat linger in the top ten, but all have shown softer momentum this year.
Among the brands showing notable declines: Mitsubishi (-40%), Suzuki (-45%), Tesla (-31%), Volkswagen (-32%), and Renault (-36%). On the flip side, Nissan jumps (+86%), Expang (+108%), and Lynk & Co (+536%)—the latter a clear beneficiary of the broader Chinese brand push into Israel.
Luxury Car Segment and Leading Models
In the premium arena, BMW continues to lead the luxury segment with about 2,900 deliveries, a 32% increase year to date, and it remains the best-selling German brand in Israel, narrowly ahead of Volkswagen. Lexus follows with roughly 2,000 units (+4%), Audi with about 1,900 (-8%), Volvo at around 1,600 (+14%), and Mercedes with just under 1,500 units, down more than half this year (-53%).
Model-wise, the best-seller is the JAC 7, boasting around 13,000 units in nine months, mainly in the hybrid-electric configuration. Following closely is a hybrid variant of Hyundai’s Kona. Importantly, seven of the top ten models are hybrids, underscoring a strong preference for electrified powertrains in the Israeli market.
Electrification and Hybrid Trends
The market’s transition to electrified propulsion continues, with BEVs accounting for about 20.5% of sales after three quarters. BYD currently leads BEV deliveries, followed by Cherry and Expang. Plug-in hybrids represent roughly 11% of the market, led by JAC and Cherry. Conventional hybrids hold a 24% share, with Toyota and Hyundai as the dominant players in that segment. Taken together, electrified vehicles—BEVs and PHEVs—are reshaping the landscape and expanding the mix of powertrains Israelis buy.
Origin of Vehicles: Where the Cars Come From
China remains the dominant source for vehicles sold in Israel, with more than 82,000 units (about 34% of the market). Korea accounts for about 45,000 units (18%), Japan around 35,000 (14%), the Czech Republic roughly 21,000 (9%), and Spain about 13,000 (5%). France registers approximately 11,000 units (4.7%), though nearly 9,000 of these are Toyota-manufactured models produced in France. This geographic mix highlights the global nature of Israel’s auto imports and the evolving role of Chinese brands alongside traditional suppliers.
What This Means Going Forward
With a clear podium shift toward Cherry and a continued tilt toward electrified powertrains, the Israeli car market appears poised for a dynamic close to the year. Consumers are increasingly choosing hybrids and BEVs, while brand assortment expands across Chinese, Korean, Japanese, and European offerings. For importers and dealerships, the challenge will be to manage supply in a year still marked by variability in production and logistics, while meeting demand for a growing range of electrified vehicles.
