Why Chinese Electric Cars So Popular in Israel?

Why Chinese Electric Cars So Popular in Israel?

The Geometry C electric car, produced by the Chinese automaker Geely Auto Group, became the best-selling vehicle model in Israel in August. figures recently released by the Israel Vehicle Importers Association (I-via).

This came as no surprise. With chic looks, reasonable prices and low energy consumption, Geometry C achieved a market share of nearly 22 percent in Israel’s EV market in the first half of 2022 and was also nominated by Auto, Israel’s leading automotive magazine, as the winner. from the “Best Buy of the Year” category.

“The car can travel up to 460 km on a single charge, which is equivalent to the length of Israel, the longest of any electric vehicle in the country,” Jerusalem Post reported as the Chinese EV model was about to enter Israel in July. 2021.

By the end of July, a total of 10,460 new EVs had reportedly been delivered to customers in Israel, 70 percent more than the same period the previous year, including the best-selling Geometry C.

The impressive performance of the model is the embodiment of the strong momentum of at least 10 Chinese EV brands in the Israeli market, including Hongqi, BYD, Weilai, Skyworth and the Great Wall.

As a relatively small area with a dense population, Israel is believed to have significant potential to embrace electric vehicles.

Israel has its own “sources of natural gas, relatively low electricity prices and high fuel prices that could drive the market to use electric vehicles based on electricity produced from natural gas,” Israeli economic analyst Michal Reut-Gelbart said, noting that battery prices of EVs have fallen 70 percent in the country over the past seven years.

Israel is also known as a country that tends to adopt technology and innovation, which could aid in the transition to electric transportation, added Reut-Gelbart, who is also a former official in the budget division of Israel’s Ministry of Foreign Affairs. Finance.

Interest in electric cars has risen sharply in Israel since Tesla launched in February 2021. Other EV models, especially those from Chinese automakers, quickly made great strides.

In 2019, there were only 12 models of EVs in Israel; while the number of options for Israeli consumers has now doubled with various brands and prices.

Like many others, the Israeli government has pursued policies to encourage the public to use electric vehicles, in hopes of cutting costs and significantly reducing emissions.

In October 2021, former Prime Minister Naftali Bennett announced Israel’s goal of achieving net-zero emissions by 2050. A plan prepared by Israel’s Ministry of Energy promises that from 2030 Israel will completely ban imports of petrol and diesel vehicles, and restrict car imports to electric or natural gas vehicles.

Tome Hadar, the auto editor of Calcalist, Israel’s largest financial newspaper, told Xinhua that taxation also explains why electric vehicles have enormous potential in Israel.

“Currently, electric car buyers in the Israeli market enjoy a 10 percent purchase tax, which is much lower than the tax on regular gasoline cars, which rises to 83 percent,” he said.

Recently, the Chinese Leapmotor T03 EV made Israel its first export destination, adding itself to the Chinese EVs driving on Israel’s streets.

“China continues to be the leading global player in the battery industry,” according to a report published by The Institute for National Security Studies of Israel, noting that China’s “breakthrough technologies for fast charging and improved energy density can greatly contribute” to the industry.

“Today, more than 76 percent of global production comes from China, and so far the West has been unable to close the gap,” the report added.