Ministry of Transport Tightens Oversight on Vehicle Import Licenses
The Ministry of Transport extended the Chery import license until 2030 despite competition concerns, while adopting a cautious approach toward other major importers like Colmobil and Union.
The Ministry of Transport extended the import franchise for Chery in Israel a few weeks ago until 2030, despite the Competition Authority's recommendation not to renew it for the long term. Following this, the importer, the Carasso Group, announced a new brand that will arrive in Israel — Jaecoo by Chery. However, for the time being, other vehicle importers are not enjoying similar benefits, according to the Ministry of Transport's records covering activity from January to July.
The Ministry of Transport has been conducting a review of concentration in the automotive industry for almost a year alongside the Competition Authority. While franchises were previously renewed almost automatically, the ministry now strictly requires consultation with the Competition Authority to consider market competitiveness before any renewal. Consequently, many importers holding franchises for Chinese vehicles are currently under review.
Status of Major Importers
While Chinese import franchises are generally valid for two to four years, importers of non-Chinese brands are facing uncertainty. For instance, the Colmobil Group's franchises for Mercedes-Benz, Smart, and Mitsubishi are valid only until the end of the current year. Since Colmobil also imports Omoda and Jaecoo—part of the Chery concern—the group holds a significant market share, which explains the limited renewal period.
Other notable statuses include:
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The AION franchise (offered by Super-Pharm) is valid only until the end of this month.
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The Geely franchise (Union Group) is valid until the end of the year.
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The Kia franchise is valid until the end of September.
Franchises "On Paper"
The Ministry of Transport's list includes several franchises that are not actually marketed in Israel due to various reasons, such as the collapse of franchisees or manufacturers. This list includes Chinese brands like WEY, EVEASY, Modern, SKYWELL, NETA, SERES, and Forthing. Surprisingly, luxury brands are also included; Auto Art (Aston Martin) and Sammel (Maserati) have delivered zero cars this year despite a surge in luxury sales. Additionally, brands like JAC and Juneyao remain registered to the now-defunct Automax.
