Q3 Snapshot: A Market in Motion
Israel’s car market is entering the final stretch of the year with three solid quarters under its belt. Through the first nine months, 242,000 new cars have been registered on Israeli roads, up 7% from the same period last year. This figure excludes buses, trucks, two‑wheelers, and vehicles brought in through personal import or parallel channels. It also includes tens of thousands of “guilloted” vehicles — units registered to manufacturers or leasing clients after a year and not yet sold to end customers — which will eventually reach buyers. In short, the sales numbers reflect the reality on Israel’s streets even as some cars temporarily sit in registries.
Leaders and Lags: Who’s Leading the Charge?
Chinese brands continue to push their way toward the top. Toyota remains the market leader, but Hyundai is nipping at its heels with faster growth. Chery has climbed onto the podium, effectively doubling its sales versus the prior year. Its sibling brand JAC also features prominently, now holding the brand’s position as the second-largest group in Israel behind the Hyundai‑Kia duo.
In this mixed performance, several other Chinese brands show strength in the top tier, with BYD cutting into declines in earlier months and MG continuing its upward trajectory. Traditional incumbents such as Skoda, Mazda, and Seat maintain a presence, though Mazda and Seat have posted declines in this period.
Best Sellers and the Electrified Trend
The top-selling model in Israel remains JAC 7, with around 13,000 units sold in just nine months — largely the hybrid/plug-in variant. Following close is Hyundai’s Kona Hybrid, with seven of the nine top models already being hybrids. This reinforces a broader shift toward electrified powertrains, even as non-electric models still account for a sizable portion of the market.
Electrification and Market Share by Propulsion
The share of electrified models continues its gradual rise, now accounting for about 20.5% of the market after three quarters. BEVs lead the electrified segment, with BYD at the forefront of BEV deliveries, followed by Chery and XPeng. Plug-in hybrids (PHEVs) capture around 11% of sales, led by JAC and Chery.
Hybrid models (non-plug-in) hold about 24% of the market, with Toyota and Hyundai as the main drivers in this space. In short, electrified vehicles are no longer niche players in Israel; they’re shaping the competitive dynamics across mainstream, premium, and emerging brands alike.
<h2 Luxury and Prestige: The Top Non-Volume Segments
In the luxury segment, German brands continue to crowd the top of the list. BMW leads luxury sales with roughly 2,900 deliveries, up about 32%. Lexus follows with around 2,000 registrations (up 4%), Audi around 1,900 (down roughly 8%), Volvo with about 1,600 (up 14%), and Mercedes just under 1,500 (down more than 50%). The luxury market remains highly selective and sensitive to shifts among importers and incentives.
<h2 Origin of the Cars: Where the Country of Manufacture Comes From
China remains the dominant source of vehicles sold in Israel, accounting for over 82,000 units — about 34% of the market. South Korea trails with around 45,000 units (18%), Japan with 35,000 (14%), the Czech Republic with 21,000 (9%), and Spain with 13,000 (5%). France accounts for roughly 11,000 units (4.7%), though almost nine thousand of those are Toyotas produced for export, a reminder of how brand and origin can overlap in complex ways.
<h2 What This Means for the Year Ahead
With three quarters complete, the Israeli car market paints a picture of resilience and transformation. Chinese brands have sharpened their competitive edge, electrification is becoming a defining criterion for buyers, and the luxury segment continues to evolve in response to both product and policy changes. For importers and dealership networks, the message is clear: diversify portfolios toward hybrids and BEVs, while maintaining momentum in mainstream models that still drive the bulk of sales.
Bottom Line
Chery’s ascent to the podium underscores a broader shift in Israel’s automotive landscape — one where electrified models, Chinese brands, and a resilient overall demand profile redefine the road ahead.
