Chinese brands ultimately led the electric vehicle industry in Israel in terms of sales from January to August of this year, Xinhua Net reports, citing the Israel Vehicle Importers Association’s latest data.
BYD leads the EV market
Chinese EV and power battery giant BYD reportedly advanced as the top-selling brand in Israel, with sales of 12,168 units in the first eight months of 2023. Notably, the popular all-electric SUV Atto 3 contributed most of the company’s EV sales in that period.
This strong performance in the EV segment pushed BYD to also advance in the country’s overall automotive market from fifth to fourth spot.
Another Chinese automaker, Geely, claimed the second spot in the EV sales ranking from Jan-August, 2023. Its Geometry C EV sales reached a total of 5,581 units during that period.
Meanwhile, American automaker Tesla ranked third with 4,948 EV sales. South Korean brand Hyundai claimed the fourth spot with 3,879 unit sales.
On the other hand, China’s Chery advanced to the seventh spot in the traditional car sales rankings with 9,820 units. It is a remarkable achievement, considering it only arrived in the country in late 2022.
Israel’s EV industry blooms
The electric vehicle industry in Israel enjoyed significant progress in H1 2023 as it exceeded its 2022 records despite the supply chain issues and economic challenges, The Times of Israel asserted.
New and imported EV deliveries surged by almost 219% to over 29,000 units in the year’s first six months. That figure indicates a significant growth from just 27,600 EV sales in FY 2022, Globes reported.
It enabled the local EV industry to claim 16.3% of the country’s new automotive market, representing an almost threefold increase from 2022.
Alarmingly, industry experts warn that the country may not be able to sustain this current upward trend in the coming months.
Challenges
According to the report, the lack of an effective pricing model may impede the country’s EV uptake.
“The rapid penetration of EV makers has meant that those who have an upper hand can heavily monopolize the fact that consumers and dealers have limited knowledge.”
The Times of Israel
It cited the latest data that show available EVs in the country had an average sticker price of approximately NIS 165,000 in H1 2023.
Established brands like Tesla implemented significant price cuts to encourage buyers to buy its models. However, EVs’ average price remains higher than local customers’ buying power.
Industry expert Matthew Hart from online auto publication Axlewise explained that EV prices usually depend on the model type.
“On average, some models will cost roughly USD $30,000, while there are more expensive models available that’s well above USD $100,000. Unfortunately, these prices will remain semi inflated for quite some time, until demand subsides, and supply chain conditions have steadily improved and helps to alleviate some of the pricing pressure.”
Matthew Hart, Axlewise employee
Moreover, some sources further emphasized that EV prices in the country are more expensive than in other developed countries.
See Also:
- Israel: BYD Atto 3 ranks third on the top-selling EVs in November
- Israeli EV fast charging developer inks deal for US distribution
- Tesla has delivered 10,000 vehicles to Israel
- Israeli EV Group REE Automotive will build a plant in the UK
- Chinese EV makers aim for worldwide expansion
Considering that pricing is among the top obstacles to EV uptake in Israel, the dominance of Chinese brands is unsurprising. Due to their technological prowess and cost-saving strategies, China-made vehicles are usually more affordable than any other foreign brand.
The Israeli Government must actively develop policies and programs to support the EV uptake and ensure it can sustain the upward trend.
