Sinicization at high speed: characteristics of the Chinese car market that we have adopted, and why it does not always work
In July, Chinese models accounted for 45% of new car deliveries in Israel. The market is increasingly adopting Chinese characteristics, including consumer psychology, sales methods, and quality issues.
Last month, a significant achievement was supposedly recorded in the Israeli car market: according to the Israel Vehicle Importers Association, 26,481 new cars were delivered. Let us not be mistaken: this figure is largely a "fake." During the last three days of the month, over 12,000 new cars were delivered, indicating sales to dealers and fleets rather than end consumers. However, a key milestone was reached: in the annual total of 203,430 vehicles, about 45% were Chinese. Given the decline in non-Chinese brand sales, it is likely that by 2026, Chinese manufacturers will hold over 50% of the market.
Going out to external marketing
In China, cars are often sold by retailers rather than just official representatives. The term "car from AliExpress" describes a reality where buying a car becomes a mass product without sentiment. In Israel, this barrier is also breaking down: Ion cars can now be purchased at Super-Pharm. While Israeli marketing versions depend on importer interests, the "ship the car and forget" policy is becoming increasingly characteristic of our market.
Malfunctions
Blurred screens, exploding tires, failing air conditioners, and overheating batteries are just the tip of the iceberg. Facebook groups easily expose an alarming number of malfunctions in Chinese cars. Israelis have become accustomed to this, displaying a kind of masochism by accepting these issues with love. In China, consumers also document defects, but there, a car is viewed as an almost disposable product to be replaced every two to three years. Israelis pay nearly twice as much yet are willing to overlook much more significant problems.
Closing of inefficient marketers
Chinese manufacturers are unwilling to tolerate weak performance. Last week, the Forthing franchise changed hands quietly because the Chinese side does not tolerate low sales. Brands with figures ranging from zero to 50 cars a year, such as JAC, EVEASY, and Skywell, are at risk. Without numbers, there is no franchise.
Sticker brands
In the Chinese market, there are brands with no history—these are "sticker brands." In Israel, this is also appearing: for example, the new brand "Lepas" is marketed as "Lepas by Chery" due to Ministry of Transport regulatory requirements. In the industry, this is called "doing a Lacoste": when a manufacturer simply changes the emblem on a finished product.
Accelerated aging and severe depreciation
Chinese cars suffer from severe depreciation. In Israel, the situation is exacerbated by aggressive fleet sales and the fear of technological obsolescence. Consumers today are more tech-savvy; they understand that low prices often hide flaws in finish quality, safety, or battery capacity. The "apathy war" among consumers is a phenomenon well-known in China that has now become a reality for the Israeli market.
