Chery Group Expands Israeli Auto Market Presence With Four Brands Amid Regulatory Challenges
The Carasso Group, operating under the name Frisbee, has introduced the Chinese automotive brand LEPAS to Israel, according to the Ministry of Transport records. LEPAS, a brand inspired by the leopard symbolizing speed, power, and elegance, targets affluent urban families with three environmentally friendly models currently available. LEPAS is part of the Chery automotive conglomerate, which already markets several brands in Israel, including Chery, Omoda, and JAC. These brands share platforms and mechanical components but differ in branding and market positioning.
The Israeli automotive sector is currently under scrutiny by the Competition Authority and the Ministry of Transport, which are reviewing import licenses amid concerns about market competition. Many importers, such as Telecar, Calmobile, and Geo Mobility, have had their licenses delayed or not renewed. Recently, a delegation from ICAR, another Chery subsidiary, visited Israel to explore market opportunities, as existing Chery importers Calmobile and Carasso cannot add more brands due to regulatory limitations.
Carasso reported to the Tel Aviv Stock Exchange that despite the Competition Authority's recommendation against renewing its Chery import license for an extended period, the Ministry of Transport renewed it until 2030. Shortly thereafter, LEPAS vehicles began appearing in import records, with the LEPAS 8L model set to enter the market. While LEPAS is registered as a separate brand, it is manufactured by Chery, reflecting a strategic branding approach to navigate regulatory constraints.
Statistically, Chery's conglomerate dominates the Israeli car market, holding a 22% share with 40,948 vehicles sold in the first half of 2026, split between Calmobile (JAC and Omoda) and Carasso (Chery and soon LEPAS). Despite the presence of multiple brands, competition has not significantly lowered prices, partly due to the high proportion of fleet sales, 81% for Chery and 55% for Omoda and JAC combined, which limits pricing flexibility. Attempts to reduce prices have been minimal and often offset by adding minor accessories.
The market faces challenges in brand positioning, as higher-end models like Omoda and LEPAS are mechanically similar to more affordable Chery models, raising questions about price justification. The Israeli consumer is willing to pay a premium for electric vehicles perceived as superior to German brands, but the differentiation within Chery's portfolio remains unclear. Currently, two importers control four Chery-related brands, creating a complex competitive landscape with limited price competition. Whether the Ministry of Transport's decision to renew licenses and allow LEPAS imports will foster genuine competition remains to be seen.
