Chinese Car Maker Chery Linked to Iran Amid Israeli Market Success and Security Concerns

A recent investigation by journalist Itzhak Lampert, based on international reports including Bloomberg, reveals connections between the Chinese automotive group Chery and Iran, raising concerns amid Chery's growing presence in Israel. Chery operates in Israel through several brands such as Chery, JAC, Omoda, and Lifan, marketed by different importers including Calmobil, which handles JAC since 2024.

The probe highlights that Chery has long collaborated with Iranian companies, producing and selling models under different names in Iran. A notable mechanism described as "cars for metals" involves Iran exporting copper and zinc to China in exchange for car assembly kits, primarily for Chery vehicles. These kits are assembled locally in Iran, enabling trade despite Western sanctions.

Lampert points out the contrast between Chery's success in Israel, where its brands rank high in sales, and the public's limited awareness of the company's Iranian ties. He also notes that Chery Tiggo 8 vehicles were previously leased to the Israel Defense Forces but are now being phased out. The investigation warns about security risks posed by modern connected cars equipped with cameras, cellular connectivity, and remote software updates, especially near sensitive military sites. Lampert advises caution and recommends separating civilian markets from security-related entities when allowing connected vehicles in sensitive areas.

Calmobil has not responded to requests for comment. While the investigation does not accuse Chery of espionage, it urges a reassessment of the use of connected vehicles in Israel's defense infrastructure given the geopolitical implications.