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CalcalistEconomy

Israel Considers Dramatic Cut to Small-Series Vehicle Imports

Translated & summarized from Calcalist by baba

BusinessNeutral tone

Hebrew · Sole source

Israel's Ministry of Transport is considering a sharp reduction in the import quota for "small-series" vehicles from 400 to 10 units annually starting in 2027. The move could affect brands relying on this exemption, originally intended to boost electric vehicle imports.

The story in 5 lines · by baba

  • Israel may cut small-series car imports from 400 to 10 units annually.
  • The change is planned to take effect in 2027.
  • The exemption was used to encourage electric vehicle imports.
  • Chinese automakers now meet full European standards.
  • Some imported cars had incomplete safety features.

Israel's Ministry of Transport is currently reviewing regulations that could significantly reduce the number of "small-series" vehicles allowed into the country starting in 2027. Currently, Israel permits the import of cars that meet European, Canadian, or American standards. A specific European exemption allows for limited imports of vehicles that do not fully comply with all regulations, originally intended for exotic supercars.

In Israel, this exemption was previously used to encourage the import of electric vehicles, particularly from Chinese manufacturers, by allowing up to 400 such cars annually. However, the European market has since changed, with Chinese automakers now producing vehicles that meet full standards and dominate the continent, rendering the small-series exemption less relevant for them.

The Ministry of Transport recently circulated draft import procedures for 2027, proposing a drastic reduction to just 10 small-series vehicles per year. This change could impact several brands currently relying on the existing quota, including Avatar and JAC, for whom the 400-unit allowance is crucial for their market presence.

Concerns have been raised that some imported small-series vehicles have had incomplete safety features and lacked long-term support in Israel. Importers whose manufacturers have not yet established significant operations in Europe have reportedly appealed to the Ministry of Transport for an extension of the current import allowance, but have not yet received a response. The Ministry stated that the matter is under review by its Vehicle Division in consultation with legal officials.

CalcalistOther · Tel Aviv

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