Delola Vehicle Importer CEO Bets $50 Million on Company Stock

Gil Agmon, CEO and controlling shareholder of Israel's Delek Vehicle, has purchased approximately 10% of the company's shares for around NIS 200 million (approximately $50 million). This acquisition, made at a 25% premium to the market price, follows a similar NIS 145 million purchase two years ago. The move comes as Delek Vehicle's stock has fallen 70% from its peak four years ago, driven by declining market share in car imports and disappointing investments in infrastructure and high-tech.

Delek Vehicle, once a dominant importer of Mazda and Ford, has seen its market share shrink to about 3% in the first half of 2026, down from a high of 25% two decades prior. This decline is attributed to changing consumer preferences favoring new Chinese brands and the company's late entry into the Chinese market and leasing operations. Financially, the company reported a loss of approximately NIS 78 million in the first half of the year, compared to a profit of NIS 100 million in the same period last year. This downturn was partly due to a significant NIS 161 million write-down on its investment in the chip company Hailo, which also saw other prominent investors incur losses.

Despite these challenges, Agmon's significant investment signals strong confidence, though market observers are divided on whether he or the market is misinterpreting the situation. Delek Vehicle's complex structure as a holding company, with substantial assets in infrastructure (Veridis) and real estate, alongside its struggling auto import business and significant debt, makes it difficult for investors to analyze. The company's limited communication with the capital markets further exacerbates this issue.

Looking ahead, Delek Vehicle is pinning hopes on new Chinese models, the launch of Mazda's electric vehicles, and growth in its Eurodrive leasing arm. However, industry experts are skeptical about a return to past market share levels, with some predicting a ceiling of around 5%. While the company has had notable successes, such as early investments in Mobileye, recent years have been marked by significant investment disappointments in auto-tech startups like Hailo, AutoTalks, and Innoviz, leading to substantial value erosion.