Chinese Car Brands Face Shake-Up in Israeli Market Amidst Shifting Dealerships
Translated & summarized from Calcalist by baba
Auto Chen has acquired the Israeli dealership for the Chinese EV brand EVEASY, reflecting a broader trend of underperforming Chinese car brands struggling in the Israeli market. Several Chinese brands have seen minimal or zero sales, leading to dealership changes and a reevaluation of their presence. Regulatory scrutiny and a global shift towards the European market are contributing factors to this shake-up, with more changes expected.
The story in 5 lines · by baba
- Auto Chen acquired the Israeli dealership for the Chinese EV brand EVEASY, signaling market shifts.
- Several Chinese car brands, including EVEASY and Forthing, have experienced very low sales in Israel.
- Israeli regulators are scrutinizing the auto industry, facilitating license transfers for underperforming brands.
- Chinese automakers are increasingly focusing on the European market, developing models suitable for both regions.
- While some Chinese brands succeed, others face consolidation, with more dealership changes anticipated.
The Israeli automotive sector is witnessing a significant shift as dealerships for Chinese car brands change hands, signaling a broader trend of consolidation and reevaluation. Last week, Auto Chen, part of the Bililus Group, acquired the dealership for the Chinese EV brand EVEASY. This move follows a pattern of underperforming Chinese brands struggling to gain traction in Israel.
EVEASY, a joint venture between France's Renault and China's Jiangling, has seen minimal success in Israel, with zero sales this year and only one model available. Similarly, Auto Chen has also taken over the import license for Forthing, another Chinese electric brand with sluggish sales. Other Chinese brands like Modern have also recorded zero sales.
This reshuffling is attributed to a combination of historical, regulatory, and global factors. Israeli regulators are scrutinizing the automotive industry, making it easier to transfer licenses for brands that are not performing. Furthermore, major importers face managerial limitations in handling the influx of complex Chinese models. Globally, Chinese automakers are increasingly focusing on the European market, developing models that meet European standards, which are also suitable for Israel. However, the initial foray into the Israeli market for some brands proved challenging, with ill-suited models and inconsistent pricing.
While some Chinese brands like Chery, Geely, and BYD are thriving in Israel, others like Skywell, Modern, EVEASY, and SERES are struggling. The article notes that Chinese manufacturers are less tolerant of underperforming brands compared to Western ones. The current situation suggests that Chinese automakers who have used Israel as a testing ground are now seeking new partners as they prepare to enter more lucrative markets like Europe. This dynamic, coupled with the potential for new importers to capitalize on market opportunities, points to further dealership changes in the near future.
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