Sales Surge: The Car Market is Rising, and Chinese Brands Lead the Way

July concluded with impressive new car delivery figures, as 26,481 vehicles hit Israeli roads. A total of over 203,000 cars have been delivered since the beginning of the year*, marking a 10% increase compared to the same period in 2025.

The Chinese Chery concern continues to lead the local market, with Jaecoo ranking as the best-selling brand with nearly 23,000 units (sister brand Omoda ranks 12th with over 3,000 deliveries), ahead of Chery itself with 21,000. BYD, MG, Geely, and Xpeng occupy positions 6-10, cementing Chinese dominance: 6 out of the 10 leading brands in Israel are now Chinese. The remaining four spots are held by Toyota, Hyundai, Kia, and Skoda, all of which have lost market share this year.

In fact, apart from Tesla (+47%) and Citroen (+11%), almost no non-Chinese brands have seen growth exceeding the market average. The few that managed to increase their market share sold relatively small volumes — KGM, Opel, Dacia, and Fiat.

In contrast, several veteran brands previously considered strong have recorded sharp declines this year. Hyundai and Volkswagen fell by 20%, Subaru by 30%, Peugeot by 33%, Suzuki and Mitsubishi by 36% and 38% respectively, Nissan lost 41%, Seat plummeted by 55%, and Mazda recorded the most dramatic decline with a 73% drop in sales.

Parallel to the significant decline in veteran brands, the 15 leading Chinese brands recorded an average sales increase of 88%. In total, 92,000 Chinese-made cars were delivered in Israel this year, accounting for 45% of the local market.

Of the cars sold in Israel this year, 12% are electric, compared to 16% during the same period last year. Conversely, the market share of plug-in hybrids (PHEV) rose from 10% to 24.5%, while regular hybrids increased from 25% to 30%. In total, two-thirds of new cars in Israel this year are equipped with some form of electric assistance.