Economy16:23 · 46m ago

Super-Pharm Joins Retailers Selling Chinese Electric Cars Amid Market Glut

Globes
Translated & summarized from Globes by baba
The story · English

Super-Pharm announced this week it will begin selling Chinese electric vehicles from the GAC brand on its website, offering the Aion model starting at approximately 155,000 shekels. Buyers will also receive additional perks such as a 5,000-shekel gift card and a charging station. This move follows similar initiatives by other retail chains: Osher Ad marketed a limited stock of Kia Sportage vehicles at 140,000 shekels, and Rami Levy partnered with DeLoom Motors to sell BAIC brand cars in stores starting below 100,000 shekels.

Industry analysts attribute these retail ventures primarily to the current oversupply crisis facing car importers, with tens of thousands of new vehicles sitting idle in lots amid fierce price competition. These conditions are expected to prompt more point-of-sale marketing experiments involving physical stores and online platforms in the near term. However, major importers view such collaborations as temporary measures aimed at clearing aging inventory or promoting lesser-known brands without strategic long-term commitment, partly to protect showroom exclusivity and brand image.

Osher Ad sold out its limited stock in one day, while Rami Levy plans to significantly expand its car sales activities soon, though no detailed plans have been revealed. Globally, retail car sales split between two models: a successful membership-based digital brokerage, exemplified by Costco in the US, and direct in-store sales, which have largely failed, as seen with Tesco’s short-lived used car sales in the UK.

Regulatory and insurance restrictions limit supermarkets from acting as independent car dealers unless they establish dedicated sales websites. Israeli consumers also prioritize service and spare parts availability, especially for less familiar brands, and are accustomed to negotiating prices and trade-ins in showrooms. Rami Levy reportedly intends to overcome these challenges by creating specialized car marketing facilities. This development highlights the evolving dynamics in Israel’s automotive retail sector amid supply pressures and shifting consumer habits.

Read the original at Globes
Open the live terminal