The volume of Chinese car exports this year is something the like of which the world’s vehicle industry has never experienced. Between January and the end of June, five million vehicles were exported from China, more than the exports of South Korea, Japan, and Europe combined. Of these, one million were exported in June alone. By the end of the year, the figure is expected to reach 10-12 million.
There are several external and internal causes of this phenomenon, but whatever they may be, Israel is experiencing its full force. At 43%, the market share of Chinese-made vehicles in the first half year is the highest among all Western countries, and according to initial estimates it reached 50% by the end of July, and could go higher by the end of the year.
This influx considerably boosts the purchasing power of Israeli buyers, and depresses prices across the entire vehicle market. But it has long-term consequences that could offset the short-term advantages, and consumers should pay attention to them. So here are some tips for adapting to the Chinese car market.
How to avoid the orphan brand
Dozens of Chinese vehicle brands are officially imported into Israel, but many of them are "dormant". That is, almost no vehicles of the brand are actually imported, and what is sold, if anything, is old stock. The reason for that can be a change in the manufacturer’s policy on exports to Europe, or that the manufacturer is in financial difficulties because of the tough competition in China and the rapid rate of cash burn that that situation dictates.
This is true of small, independent manufacturers, but even large, well-established vehicle groups are reorienting themselves, changing business models, or withdrawing from Europe. Among the brands concerned are Aiways, which has ceased to operate; Great Wall Motors’ Wey marque, which is no longer on sale in Europe; Skywell, the intentions of which regarding Europe are uncertain; and Geely’s Polestar marque, about which it is not clear when it will return to Israel. The list is liable to lengthen.
Research by business consultancy AlixPartners concludes that only seven of the thirty largest Chinese manufacturers of reduced-emissions vehicles will survive until the end of the decade, and that the rest will merge with one another or disappear. Among the smaller brands the process could be even swifter.
It is therefore recommended to make a check list that will indicate the chances of a vehicle brand becoming "orphaned" within a few years, leaving its customers with a problem.
A first indication is the volume of sales of the brand in Israel and in China in relation to other brands of a similar vintage in the same segment. The data can be found in monthly sales reports in Israel and China, and an examination of the "zero kilometer" market (i.e., vehicles sold by, for example, leasing firms that are officially secondhand but have no kilometers on the clock) can also give an indication of the brand’s position. It is also worth finding out whether the brand is sold regularly in markets with strict consumer law requirements, such as the UK and Germany.
As mentioned, the fact that a brand belongs to a large and well-established manufacturer doesn’t necessarily make it immune to becoming orphaned, since there are and have been manufacturers that decide to scrap a particular brand. In that event, although spare parts should still be available, vehicles of that brand will no longer receive routine software upgrades, which these days are critical to extending the use of many models.
It’s also worth finding out whether the manufacturer invests the required capital in meeting the full European standard for models that it exports to Europe and to us, which can be an indication of a long-term commitment to the brand, or whether it suffices with the backdoor of the standard for small series, which is considerably less onerous than the full European standard, but is limited to the import of up to 400 vehicles a year.
Is there a stock of spare parts?
The logistics of supplying spare parts for a vehicle from China do not always keep pace with the dizzying rate at which exports to the West are expanding. The result is "black holes" in supply that can sometimes lead to a shortage of critical parts and to long delays of weeks or even longer to the repair of vehicles at garages.
Therefore, before buying a new or used vehicle of a certain brand, consumers are recommended to check individually the quality of support that an importer can provide over time. A veteran importer with a broad portfolio of strong brands will be able to absorb supply difficulties of a particular brand and to provide service, especially for a new vehicle. Theoretically, the Ministry of Transport penalizes importers that fail to meet service and parts commitments over time, but that doesn’t solve the problem if the manufacturer doesn’t meet its commitments.
It’s possible to check with the importer, and sometimes even to ask for a commitment that frequently required parts such as bumpers, windscreens, lights, and radar sensors are available and are held in the main parts warehouse in Israel, or at parallel importers, in reasonable quantities.
The logistical risk for a model or brand can be estimated by making enquiries at garages, which know how long it takes to order parts, or at the insurance companies. There have been cases in which insurance companies in Israel have been forced to declare a vehicle a total loss because of a prolonged shortage of critical parts. Since they really don’t like doing that, they tend to make insurance for certain models and brands expensive, and that’s another red flag.
Don’t hang onto a car for three years
The main difference between the vehicle industries in China and in the West lies in the rapid rate at which Chinese manufacturers launch new and revamped models. Most customers in Israel are still used to at least three years going by before their vehicle undergoes a significant update that causes the existing generation to lose value. That is therefore the interval at which many customers in Israel sell their cars.
With the Chinese, the development cycle is much shorter, and it is not rare to find key models that change generation or undergo substantial renewal within fifteen months or even less.
In the case of brands that are not completely committed to exporting to Europe, they may continue exporting their previous generation to Israel when the next generation is already on sale in China, and then switch models very quickly. Sometimes not only does the new generation represent a comprehensive technological upgrade, but it is also significantly cheaper. In short, it’s worth following what’s happening overseas, and considering replacing a vehicle after a much shorter period of use, even though it’s almost new.
Published by Globes, Israel business news - en.globes.co.il - on August 3, 2026.
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