Asian Auto Market | Israel June 2025: Chinese Auto Brands Make Full Advance

In the second quarter of 2025, Israel's automotive market experienced a significant decline, with a year-on-year drop of over one-third, but Chinese brands bucked the trend with impressive growth.

Jaecoo J7 became the dark horse of the market, taking the quarterly sales crown; brands like Chery, ZEEKR, Ji Yue, XPeng, and BYD all made it to the top ranks, with some models even breaking into the top ten in sales. Chinese automakers are rapidly building brand recognition and market share in Israel, leveraging their strengths in SUVs and new energy vehicles.

Israel's Automotive Market

Overview and Competitive Landscape

In June 2025, Israel's new car market saw sharp fluctuations, with sales down 34.4% year-on-year to just 17,000 units, also declining month-on-month from May. This brought the cumulative sales for the first half of the year to a mere 2.9% year-on-year increase, reaching 159,700 units.

From the monthly brand rankings, Japanese and Korean brands still dominate, but their advantage has weakened.

◎ Toyota maintained its top position with a 13.6% share, though sales fell 29.3% year-on-year;

◎ Hyundai and Kia ranked third and fourth, with Hyundai's sales down 17.6% and Kia's down 32.4%.

◎ Additionally, Skoda fell 32.1%, with European brands overall performing weakly.

New energy and compact SUVs remain the market's key models.

From specific models:

◎ The Jaecoo J7 sold 4,450 units in Q2, capturing 7.2% of the market share, not only winning the quarterly crown but also securing the top spot for the first half of 2025.

◎ The Hyundai Kona, which had long held the top spot, fell to second place, though its sales still grew 237% year-on-year, showing resilience.

◎ The Chery Tiggo 8 Pro jumped to third place with a 4% market share, surpassing long-time favorites like the Toyota Corolla Cross and Kia Picanto.

Chinese brands now occupy four of the top ten spots in the overall model rankings: Chery alone holds three spots with the J7, Tiggo 8 Pro, and Tiggo 7 Pro, plus the XPeng G6, showcasing the diversified success of Chinese SUVs.

In terms of powertrains, plug-in hybrids and pure electric vehicles continue to expand their share. The overall new energy market showed signs of slowing due to macroeconomic fluctuations, but brands like XPeng, Ji Yue, Deepal, and BYD maintained growth.

XPeng surged 218% year-on-year, while Deepal and Ji Yue broke into the top 20 and top 30 for the first time, respectively, demonstrating Chinese brands' competitive edge in the new energy sector.

Chinese Automotive Brands

Performance and Trends in Israel

Chinese automotive brands are emerging as a new force in Israel's market.

◎ This quarter, Chery became the second-largest brand after Toyota, with a 10.7% market share, up 75.4% year-on-year. Chery's rapid growth in Israel is reflected not only in overall brand sales but also in model diversity and market adaptability.

The Tiggo 8 Pro sold 2,473 units in Q2, accounting for 4% of the total market, jumping to third place in the model rankings; the Tiggo 7 Pro ranked eighth with 1,668 units; and the Tiggo 4 Pro also made it into the top 40, showcasing Chery's strong multi-SUV strategy.

Jaecoo was the quarter's biggest dark horse. Despite being a new entrant, the J7 alone sold 4,450 units, far ahead of the second-place Hyundai Kona. The J7's advantages in design, space, and value for money quickly won over family users, propelling Jaecoo to sixth place overall.

◎ BYD, facing significant market volatility, saw sales drop 45.2% year-on-year but still held seventh place. Its key models, the Dolphin and Song PLUS, sold 1,070 and 833 units, respectively, remaining in the top 20.

◎ XPeng staged a strong comeback, with the G6 breaking into the top ten with 1,381 units sold in the quarter, up 218% year-on-year.

◎ Ji Yue and Deepal appeared on the rankings for the first time, with Ji Yue selling 83 units and Deepal 136 units. Though small in scale, their growth rates were rapid.

◎ The Geometry C, representing Geely, sold 661 units in Q2, slightly down year-on-year but still holding a solid position.

◎ ZEEKR, despite a decline, maintained some sales due to brand influence and prior momentum.

From a model perspective, Chinese brands' product portfolios in Israel are maturing:

◎ On one hand, fuel and hybrid models, especially mid-to-large SUVs, continue to attract family users with their spaciousness, high configurations, and affordability;

◎ On the other hand, in the pure electric segment, brands like XPeng, BYD, and Ji Yue are winning over younger, tech-savvy consumers with stylish, intelligent designs.

◎ Additionally, brands like Lynk & Co, Voyah, and AITO are beginning to test the market, laying groundwork for future expansion.

The rapid rise of Chinese automakers is putting real pressure on traditional mainstream brands.

◎ European brands like Skoda, Citroën, Peugeot, and Renault, which long dominated sales, saw declines of over 30% this quarter;

◎ Even Korean and Japanese brands face fierce competition from Chinese SUVs and EVs.

Trends suggest Chinese brands could further expand their market share in the second half of 2025.

Summary

In Israel, a key Middle Eastern market, Chinese automotive brands are accelerating their breakthrough, evolving from a single new-energy focus to a diversified competitive landscape with both fuel and electric models.