How Chery is Capturing the Israeli Automotive Market Through Four Brands
The Carasso Group ("Freesbe") has begun importing vehicles from the new Chinese brand LEPAS. Despite being marketed as an independent entity, LEPAS is part of the Chery concern, which currently holds a 22% share of the Israeli automotive market.
According to Ministry of Transport records, the Carasso Group ("Freesbe") has imported the first cars of a Chinese brand named LEPAS into Israel. The brand's message is "To bestow excellence upon the world, one must control life elegantly." The name is a combination of LEAP and PASSION, symbolizing a leap in passion. Inspired by the cheetah, the brand aims to combine speed, power, and elegance. It is intended for established urban families and currently features three models, all equipped with eco-friendly propulsion systems.
Beyond the branding, LEPAS is another addition to the flagship offering of the Chery concern in Israel. Vehicles from Chery, Omoda, Jaecoo, and now LEPAS share platforms, engines, and numerous mechanical components. The primary difference lies in branding and market positioning.
Competition and Licensing Challenges
The Israeli automotive industry is currently under scrutiny by the Competition Authority and the Ministry of Transport, which has stalled the arrival of many car brands. The Ministry is in a period of renewing import licenses, and where competition concerns arise, franchises are either not renewed or granted for short periods. Many importers, including Talcar, Colmobil, and Geo Mobility, have faced long delays. A significant portion of these stalled brands belongs to the Chery concern.
Despite recommendations from the Competition Authority against a long-term renewal for the Carasso Group, the Ministry of Transport extended their Chery license until 2030. Shortly thereafter, the first LEPAS vehicles were registered.
The "Lacoste" Strategy
In the industry, this phenomenon is known as "doing a Lacoste"—rebranding the same product to create an illusion of choice. While LEPAS is registered as a separate company, the manufacturer is listed as Chery. Interestingly, Omoda and Jaecoo are treated as independent manufacturers by the Ministry of Transport, similar to how Kia is not registered as part of the Hyundai-Kia concern.
Statistically, Chery concern vehicles are the best-selling in Israel. In the first half of 2026, 22,479 Omoda and Jaecoo vehicles were sold, alongside 18,469 Chery vehicles, giving the concern a 22% market share.
Real Competition or Illusion?
Import rights are divided between Colmobil (Jaecoo and Omoda) and Carasso (Chery and LEPAS). Theoretically, competition between these importers should lower prices. In practice, this is not the case. A major factor is the heavy reliance on fleet sales: Ministry of Transport data shows that 81% of Chery deliveries go to fleets, compared to 55% for Omoda and Jaecoo. Any official price reduction would threaten the value of existing inventory, making it economically unfeasible for importers.
Experience shows that importers prefer adding minor accessories over lowering prices. While price cuts do exist in the Israeli market, they are typically found among brands not at the top of the sales charts, such as Dongfeng or MG. It remains unclear how Carasso will position LEPAS above the already well-equipped Chery lineup. Only time will tell if the Ministry of Transport's decision to allow the import of LEPAS will foster genuine competition.
