Chinese Car Brands Drive Market Shift as Israeli Importers See Diverging Sales Trends

The Israeli automotive market is experiencing a significant shift in consumer preferences, with Chinese car brands rapidly gaining popularity and reshaping the competitive landscape. This change is reflected in the contrasting sales performances of two major car importers: Carasso Motors and Delek Automotive.

Carasso Motors, historically reliant on Nissan and Renault, has increasingly focused on Chinese brands Chery and Xpeng. Under CEO Itzik Weitz, Carasso boosted its market share to approximately 15.3% in the first half of the year, up from 13.8% the previous year and just 7.4% five years ago. Chery became one of Israel's top-selling brands, with Carasso selling 32,500 vehicles in the first half of 2025, a 36% increase year-over-year, driven largely by a 62.5% surge in Chery sales to 17,600 units.

Conversely, Delek Automotive, led by Gil Agmon, has seen a steep decline. Once commanding about 25% of the market two decades ago, the company’s share dropped to just 3% in the first half of 2025, with new vehicle sales plunging 42% to 5,186 units. Mazda sales fell 68% to 1,790 vehicles, and Ford sales decreased by 8.5% to 555 units. Although premium brand BMW sales remained stable, the overall decline led to a 3% drop in automotive revenue to 1.7 billion shekels.

Financially, Delek Automotive reported a net loss of 12.6 million shekels in the first half of 2025, compared to a 92 million shekel profit the previous year, largely due to a 161 million shekel impairment on its investment in chipmaker Hailo. Its stock has fallen about 40%, now valued at 1.4 billion shekels. Meanwhile, Carasso Motors’ revenue rose 15% to 4.7 billion shekels, though its net profit declined 32% to 150 million shekels, affected by a 21 million shekel write-down and an 11.5 million shekel fine related to customer warranty issues.

Despite Carasso’s sales growth, the average profit per vehicle decreased by 7% to 14,600 shekels, reflecting the lower margins of Chinese brands. Delek’s average profit per car dropped even more sharply, from 21,400 to 13,600 shekels, due to the decline in higher-margin legacy brands. The evolving market underscores a broader consumer shift toward Chinese vehicles, which is reshaping Israel’s automotive import sector.

Summary: Israeli car importers Carasso Motors and Delek Automotive show diverging fortunes as Chinese brands like Chery and Xpeng gain market share, boosting Carasso’s sales and market presence while Delek faces steep declines and financial losses in 2025.