After IAI and the IDF, Elbit Also Removes Chinese Cars From Its Leasing Fleet

The removal of Chinese-made vehicles from the fleets of government bodies and defense companies is continuing, driven by cyber and data security concerns. After Chinese-made vehicles were blocked in recent months from participating in leasing and purchase tenders for the IDF, Israel Aerospace Industries, Rafael and others, Elbit Systems is now joining in.

Elbit, one of Israel’s largest defense companies, had until recently allowed eligible employees with company cars to choose from a list that included many Chinese-made models. In recent days, however, employees who selected Chinese cars received notice that the option had been canceled retroactively, and they are being asked to choose from other models on the list. Estimates suggest this affects hundreds of Elbit employees in the current vehicle allocation cycle and thousands in future cycles. The main beneficiaries are expected to be competing popular models from Korea, Japan and Europe.

Elbit’s fleet includes about 4,500 vehicles, most of them leased, and is considered one of the largest in the private sector. The decision means the company will significantly reduce its planned acquisition of plug-in vehicles, since the Western competitors have almost no models in the relevant price range of 160,000 to 250,000 shekels. Elbit did not respond.

Meanwhile, industry sources say that the sudden announcement earlier this month by the government procurement director at the Finance Ministry, canceling planned tenders for electric vehicles for government employees, was also intended in practice to block Chinese vehicle purchases. According to the sources, "the decision was made due to pressure from the U.S. administration and tightened cyber-defense policy following the rounds of fighting with Iran." Most of the models that were contenders in the government’s electric tenders were made in China. The Finance Ministry preferred not to "open a public front" with the Chinese government, and instead canceled the tenders altogether until further notice. The ministry said in response that "in light of changes in the car market, which affect the electric vehicle segment, it was decided that further internal work is needed in order to improve the pricing documents."

The American regulation The United States is also leading a regulatory effort through various channels aimed at blocking the spread of "smart" and network-connected devices made in China, including vehicles. The move is taking place both in the U.S. itself and in countries considered its allies. Among other steps, the administration added two Chinese automakers, BYD and NIO, in recent days to the "blacklist" of Chinese organizations defined in the United States as having a "military affiliation," due to their ties with the Chinese military. The companies denied the affiliation and said they would appeal.

Deepal, BYD and Suzuki, the new models on the way Tnuva Motors has begun marketing in Israel the plug-in version of the Deepal S05 crossover, which had previously been sold in Israel only in an electric version. The vehicle combines a 1.5-liter gasoline engine and a front electric motor, with a claimed combined output of 320 horsepower and an 18.4 kWh battery, with an electric range of up to about 100 kilometers under WLTP.

The claimed total combined range on gasoline and electricity is more than 1,000 kilometers. Acceleration from 0 to 100 km/h takes about eight seconds, and the claimed combined fuel consumption is about 50 km per liter. The car keeps the dimensions of the electric version, with a wheelbase of 2.88 meters, and the cabin design also remains almost unchanged. The base trim, priced at 155,000 shekels, includes, among other things, synthetic leather upholstery, power-adjustable front seats, a surround-view camera and more. The top trim, priced at 165,000 shekels, adds, among other things, a head-up display, a sunroof and a powered tailgate.

BYD this week unveiled in Europe the supermini "Dolphin G," which will be the cheapest plug-in car in Israel. It is 4.16 meters long, 1.57 meters high and has a wheelbase of 2.61 meters. The trunk capacity is 425 liters.

The entry-level version of the car has plug-in powertrain technology that combines a 1.5-liter gasoline engine, an electric motor and a 7.4 kWh battery. The combined output is 173 horsepower and the electric range is up to 40 kilometers under WLTP. The top version has a 210-horsepower engine and an 18.3 kWh battery with an electric range of up to 105 kilometers. The price has not yet been published, but is expected to be around 120,000 to 130,000 shekels. Sales will begin in the fourth quarter.

Suzuki has launched the electric Vitara in Israel, developed in cooperation with Toyota. The Vitara, manufactured in India, is 4.275 meters long with a wheelbase of 2.7 meters. It is equipped with a 61 kWh battery and is offered with front-wheel drive producing 171 horsepower and a range of up to 426 kilometers, or with all-wheel drive producing 181 horsepower and a range of up to 395 kilometers. Prices range from 155,000 shekels for the base model to 180,000 shekels for the all-wheel-drive version.

Watching the employees: new home charging technology now in use Large vehicle fleets in Israel have begun monitoring, using smart home charging stations, the actual amount of electric charging done by employees with company plug-in hybrid cars. That is according to Yuval Elazar, CEO of the electric vehicle charging solutions company Sonol EVI, which developed the technology.

According to him, the move stems from data accumulated over time in Israeli fleets, showing that the actual fuel savings from plug-in fleet vehicles are significantly lower than initially expected. This is because many employees prefer to forgo charging from the grid and rely on driving on gasoline, or on self-charging the battery via the gasoline engine while driving.

The new stations are also a fleet management tool, he said, and they allow an employer to reimburse an employee who has an electric or plug-in car for home charging expenses, and charge the company so that it can recognize the expense as a deductible business cost. Reimbursement of employees for home charging has until now been considered a major obstacle to the adoption of electric vehicles in Israeli fleets. However, it is still unclear whether the Finance Ministry will recognize these expenses as deductible.

According to Yuval Elazar, several large fleets in Israel have also begun installing fast-charging stations at their sites, which support the simultaneous fast charging of multiple vehicles. Such stations significantly improve the charging process in organizations, because they allow for high vehicle turnover, unlike wall chargers, each of which is occupied for hours by a single employee.