Chinese electric car manufacturers are entering the Israeli market, where Ilon Musk’s Tesla is already in this niche.
Globes reports that by the second quarter of 2022, some 10 Chinese brands are expected to enter the Israeli market and be regularly sold in Israel. That’s more than in any Western country.
China chose the Israeli market for two reasons: any announcement of Chinese electric cars for sale in a country like Israel could potentially increase the manufacturer’s stock market value (which would help brands compete with Tesla in the big market). Second, Israel is part of China’s “circle of friends” within the Silk Road, the Pan-Eurasian transport system for the transportation of goods and passengers.
Experts note that major Chinese brands are interested in cooperation with large importers, while young companies are open to new Israeli importers. Israeli companies are not deterred by the fact that the import franchise from China may not bring income in the long term, because it involves short-term investment.
In addition, there is a risk that Chinese brands will disappear, as the car market in China has not yet stabilized and small companies are dependent on positive market sentiment.
Among the announced brands that will appear in the Israeli market are FAW, SAIC MG, GAC, Sky-well New Energy Automobile Group Co. and others.