Israel's New Car Market Surges Towards Record High Despite September Dip

Israel's new car market has seen a significant increase in registrations in the first nine months of 2026, with 255,223 vehicles delivered, a 5.45% rise compared to the same period last year. This surge suggests the market is on track to potentially break all-time records, despite a 19.08% drop in September registrations to 23,709 units, a common trend as consumers often defer purchases to the new calendar year.

Chinese brands now dominate the Israeli automotive landscape, accounting for 44.37% of all deliveries with 31 active brands. Out of the top 20 best-selling models, 12 are Chinese. Omoda-Jaecoo leads the overall market, showing remarkable growth for a brand that arrived only two years ago, while Toyota holds second place despite a decrease in deliveries, ahead of Chery. Hyundai and Kia follow, with Hyundai experiencing a notable sales decline.

BYD is showing a strong comeback, with plans to expand its model lineup. Skoda has fallen to seventh place, while MG is growing due to competitive pricing. Tesla saw a significant 36.84% increase in sales. Conversely, Nissan and Seat have experienced substantial drops of 40% and 48% respectively, with Mitsubishi also affected by new regulations and a reliance on rebadged Renault models. Subaru and Suzuki have also seen declines.

Electric vehicle sales have decreased by 17.37% compared to last year, now making up 12.2% of the market. However, plug-in hybrid sales have surged by 196.98%, representing 24.1% of the market, largely driven by fleet purchases. Traditional hybrid sales continue to grow, capturing 30.7% of the market, while internal combustion engine vehicles have seen their market share shrink to 32.9% from 47.6% last year.