The "Orphaned Brand": The Danger Facing Buyers of Chinese Cars

The scale of car exports from China this year is an event the likes of which the global automotive industry has not yet experienced. From the beginning of 2026 until the end of June, 5 million vehicles were exported from China, more than the export volume of Korea, Japan, and Europe combined. Of this, one million vehicles were exported from China in the month of June alone. By the end of the year, exports are expected to reach about 10 to 12 million vehicles.

This phenomenon has several external and internal reasons, but whatever the reasons may be, Israel is experiencing this event in full force; the market share of Chinese-made vehicles in Israel in the first half of the year, about 43%, is the highest in any country in the West, and according to preliminary estimates, by the end of July it will reach about 50%, and may be even more than that by the end of the year.

This flooding significantly increases the purchasing power of customers in Israel and lowers prices across the entire market. But such an "event" has and will continue to have long-term side effects that could offset the short-term advantages, and consumers need to take them into account. We will summarize here a series of tips for adapting to the "Chinese car market."

How to avoid the "orphaned brand" phenomenon

Dozens of Chinese-made car brands are officially imported to Israel, but among them are quite a few that are in a "dormant" state. That is, they hardly import vehicles in practice, and sell, if at all, old stocks. The reason for this is a change in the manufacturer's or brand's policy regarding exports to Europe, or the manufacturer getting into difficulties due to the fierce competition in China and the accelerated pace of cash burning that the situation dictates.

This is true for small and independent manufacturers, but even large and established car groups are rethinking their paths, changing business models, or withdrawing from Europe. In this list, one can find, among others, brands like AIWAYS, which has ceased operations, the WEY brand of Great Wall, which has left Europe, the Skywell brand, for which there are currently question marks regarding its intentions for Europe, Polestar of Geely, for which it is still unclear when it will return to Israel, and other brands may join the list.

What to check before buying a Chinese car

1. Spare parts: Is there a regular and fast supply of spare parts in Israel for the chosen brand? Check with importers, garages, and insurance companies.

2. What is happening with the brand globally?: Reduce the chance of purchasing an "orphaned car brand" by tracking the sales of that brand in the country and in China, as well as the current declared policy of the brand regarding exports to Europe.

3. Replace frequently: Accelerate the ownership replacement cycle of vehicles to less than three years, in order to quickly follow upgrades and avoid a drop in value.

Research by AK, the international consulting firm AlixPartners, estimates that only seven out of the 30 largest Chinese manufacturers of low-emission vehicles operating today will survive until the end of the decade, and the rest will merge with each other or disappear. At the level of individual brands, the process may be even faster.

Therefore, it is recommended to make a "checklist" that will indicate the chance that a car brand will become "orphaned" within a few years and leave customers in trouble. A first indication is the sales volume of the brand in the country and in China relative to other brands with similar seniority in the same segment. The data can be found in the monthly sales reports in Israel and China, and also a review of the "zero kilometer" market can provide a picture of the brand's status. It is also worth checking whether the brand is exported and sold regularly in markets with tough consumer requirements, such as the UK, Germany, and others.

As mentioned, the affiliation of a brand to a large and established manufacturer does not necessarily guarantee it "immunity from being orphaned," because there are and have been manufacturers that decide to eliminate the export of a certain brand. In such a case, one can still find spare parts for the brand's vehicles, but it no longer enjoys ongoing software upgrades. And as we emphasized in a previous article, software updates today are of critical importance for extending the usability of many models.

It is also worth checking whether the manufacturer is investing the required capital in full European certification for the models it exports to Europe and to us, which may indicate a long-term commitment to the brand, or whether it is content for a long time with the back door of "certification for small series," which is significantly easier compared to full European certification, but is limited to the import of up to 400 vehicles per year.

"Black hole" in supply: is there a stock of spare parts

The logistics of supplying spare parts for cars from China does not always keep up with the dizzying pace at which exports to the West are expanding. The result is "black holes" in supply, which can sometimes lead to shortages of critical spare parts and prolonged delays, up to weeks and sometimes more, in vehicle repairs in garages.

Therefore, before purchasing a new or used car of a certain brand, it is recommended to check individually what quality of support the importer can provide over time. We note that an experienced importer with a broad portfolio of strong brands is able to "absorb" supply difficulties of a car brand and provide a service backbone, especially if the car is new. Theoretically, the Ministry of Transport also imposes sanctions on importers who do not meet service and spare parts obligations over time. But this still does not solve the problem if the manufacturer does not meet the obligation.

One can inquire with the importer, and sometimes even request a commitment that common body parts, such as bumpers, windshields, lighting units, and radar sensors, are available and kept in the central spare parts warehouse in the country, or at parallel importers, in a reasonable quantity.

Indirectly, one can check the logistical risk of a certain model or brand in garages, which know how long it takes to order spare parts, or get offers for the model being considered for purchase from external insurance companies. There have already been cases where insurance companies in Israel were forced to declare a vehicle a "total loss" due to a long-term shortage of critical spare parts. And since they really do not like this, they tend to significantly increase the insurance of certain models and brands, and this is another "red flag."

Do not wait three years: replace vehicles faster

The main difference between the Chinese and Western automotive industry is the accelerated pace of launching new and updated models. Most customers in Israel are still used to about three years passing before their vehicle undergoes a significant update and leads to a decrease in the value of the current generation. Therefore, this is also the optimal period of time in which many customers in Israel are used to selling their used vehicle.

But with the Chinese, the development cycle is significantly faster, and it is not rare to find key models that change generations or are substantially renewed within 15 months or even less.

When it comes to brands that are not entirely "closed" on exports to Europe, they may continue to export to the country their previous generation models when the new generation is already being marketed in China, and then perform a very fast model replacement. Sometimes not only does the new generation undergo a comprehensive technological upgrade, it is also significantly cheaper. In short, it is worth following what is happening overseas and considering selling and replacing a vehicle after much shorter use, even though it is almost new.