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Chinese EVs Race Ahead in Israel Despite War, Investor Jitters

Published: Sep. 23, 2025  3:10 a.m.  GMT+8
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The Route 20 highway in Tel Aviv, Israel, on Jan. 12, 2025. Photo: Bloomberg
The Route 20 highway in Tel Aviv, Israel, on Jan. 12, 2025. Photo: Bloomberg

Chinese electric vehicles are flooding Israeli streets, quickly winning market share and consumer loyalty despite the country’s ongoing war with Hamas and mounting caution from foreign investors.

“Every few days, we see a Chinese brand we’ve never heard of announcing plans to enter Israel,” said Jonathan Menuhin, CEO of the Israel Innovation Institute, in an interview during a business forum in Shanghai.

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  • Chinese EVs make up 28.7% of Israel’s auto market as of mid-2025, up from 1% in 2021, with nine of the top 10 pure EV brands being Chinese.
  • Despite the ongoing war with Hamas and security risks, trade between Israel and China grew, with imports reaching $19.1 billion in 2024, up 18% year over year.
  • Investment is chilled by conflict, but Israel’s economy remains resilient, averaging 3% GDP growth over three years per OECD projections.
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Who’s Who
Chery
Chery is a Chinese automaker that has quickly gained market share in Israel. In the first eight months of 2025, Chery ranked third overall in new-energy vehicle registrations in Israel, placing it among the top brands alongside Toyota and Hyundai. This indicates significant growth and consumer acceptance of Chery vehicles in the Israeli market.
BYD
BYD is one of the leading Chinese electric vehicle brands in Israel, ranking third overall in new-energy vehicle registrations during the first eight months of 2025, alongside Chery, behind only Toyota and Hyundai. BYD's success reflects the broader trend of Chinese EVs capturing the Israeli market due to their value and performance.
Shanghai International Port Group
Yong Zifeng, Deputy General Manager of Shanghai International Port Group's Israel unit, stated that their Bayport Terminal at the Port of Haifa has remained operational every day since 2021 despite conflict. He noted that the Israeli government promptly compensated for damages from falling debris, highlighting a "mature" disaster response system.
Daxin Engineering Co. Ltd.
Daxin Engineering Co. Ltd., based in Nantong, China, is a construction firm active in Israel. They have completed approximately 20 projects, including the 75-story ToHa 2 tower in Tel Aviv, which is Israel's tallest building. Despite the ongoing conflict, their general manager noted that Chinese workers' initial nervousness subsided, and few requested to leave, indicating resilience in their operations.
Glory Ventures
Glory Ventures, established in 2015, is an investment firm that has backed 130 startups globally, with 17 of those in Israel. However, founder Bai Zongyi noted that the ongoing conflict has significantly deterred investors, resulting in him closing only one deal in Israel over the past three years.
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What Happened When
2015:
Chinese venture capital contributed 40% of Israel’s VC funds.
2021 (early):
Chinese brands' share in Israel's overall auto market was at 1%.
2021:
Operations began at the Bayport Terminal at the Port of Haifa, operated by Shanghai International Port Group’s Israel unit.
2022:
Start of three consecutive years (2022–2024) during which Israel's GDP grew at an average of 3%.
Mid-2023:
Chinese brands' share in Israel's auto market reached 17%.
October 2023:
War between Israel and Hamas erupted.
2024:
China's exports to Israel reached $19.1 billion, up 18% year on year.
2024:
Israel's GDP maintained approximately 3% growth, concluding a three-year period of economic resilience.
By mid-2025:
Chinese brands' share in Israel's auto market reached 28.7%.
By 2025:
China became the global leader in hardware innovation, overtaking Israel in hardware competitiveness.
First eight months of 2025:
About half of all new-energy vehicles registered in Israel were Chinese brands; Chery and BYD ranked third and fourth overall.
July 2025:
The 75-story ToHa 2 tower in Tel Aviv, built by Nantong-based Daxin Engineering Co. Ltd., was topped out, becoming Israel's tallest building.
2025:
Jonathan Menuhin spoke at a business forum in Shanghai, noting rapid entry of Chinese EV brands into Israel.
2025:
Yong Zifeng confirmed Bayport Terminal in Haifa has not closed a day since 2021 despite war-related challenges.
2025:
General manager Wang Bangguo reported fewer than 700 Chinese workers stationed in Israel.
2025:
Glory Ventures founder Bai Zongyi reported not traveling to Israel for nearly three years and only one investment deal closed in that period.
AI generated, for reference only
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