Chinese Auto Giant Chery Motors Opens First Permanent Office in Israel Amid Market Expansion
Chinese automotive group Chery Motors is establishing its first permanent office in Israel, located in Holon, with local staff expected to begin operations later this year. Previously, Chery managed its Israeli market through regional managers based in the UAE and Europe, along with technical teams visiting Israel occasionally. The decision to open a local headquarters follows a sharp rise in Chery's market share in Israel, which reached approximately 22.3% of all vehicle deliveries from January to July 2023, making it the largest automotive group in the country with around 47,000 cumulative deliveries.
Israel has become Chery's leading global export market by share, surpassing Russia, where the company holds 15%-20% of national sales. In other regions, Chery's market share stands at about 7% in the Middle East (excluding Israel) and 5% in Brazil and Latin America. The company's presence in Israel is set to grow further with the introduction of three additional brands: LEPAS, a premium sub-brand imported by Carasso Motors; Icaur, focusing on luxury SUVs to be imported by a third party; and Jetour, targeting the budget segment with sales planned for next year pending European certification.
Other Chinese automakers are also expanding their Israeli footprint. SAIC, represented by the Lubinski Group (importers of MG), plans to reopen its permanent office in Israel after five years, shifting from technology partnerships to broader group interests. Geely already maintains a permanent office in Israel. Industry experts expect these Chinese offices to initially focus on managing technical and logistical relations with importers and resolving marketing issues, with potential future roles in competitive positioning, pricing, quality control, and government relations.
Chinese car brands, partially or fully state-controlled, have taken direct control over vehicle imports in key European markets, but such a move is currently deemed unfeasible in Israel. Chinese-made vehicles have surged to a record 46.3% market share of private car deliveries in Israel from January to July 2023, up from 30.7% the previous year, reaching 49.2% in July alone.
Separately, Telcar Group announced a marketing push to strengthen its position in Israel with refreshed and more affordable versions of the Kia Niro hybrid and the popular Kia Sportage plug-in hybrid. The updated Niro features improved power (138 hp), fuel efficiency (21.7 km/l), and upgraded equipment, priced between 170,000 and 175,000 shekels. The Sportage plug-in hybrid returns after several years, offering 288 hp combined power, an electric range of up to 68 km, and a starting price of about 220,000 shekels, nearly 40,000 shekels less than the previous generation.
