The automotive industry in Israel is solely dependent on European and Asian imports having no manufacturing base of its own. U.S. market share remains flat at 2.6 percent. The top four brands in Israel are Hyundai, KIA, Toyota and Skoda. The average age of vehicles is 6.5 years and rate of motorization 384 vehicles per. 1,000 residents.
israel
Summary
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Market Trends
Originally developed for use in the aerospace and defense industries, Israeli companies have successfully adapted these technologies to civilian use with groundbreaking automotive technologies. In recent years, Israel has invented a number of breakthrough technologies including specialized materials, advanced electronics, communication systems, driver awareness systems, automotive IT and security. More than 150 Israeli manufacturers supply systems, parts, modules and tooling to both original equipment manufacturers (OEMs) and to supplier Tiers, produce tool and production line systems, design and assemble buses and vehicles, manufacture after-market products, as well as developing advanced automotive technologies including innovative materials, advanced electronics and automation technologies, and clean tech initiatives.
Israeli importers are always on the lookout for quality products at competitive prices—usually in that order. Market demand is greatest for: • Car security and anti-theft devices—anti-theft electronic
Access to the Israeli market by U.S. exporters is best achieved through any of the 600–700 importers of aftermarket products. Distributors will import on their own account, carry sufficient stock to satisfy ongoing demand or to use for demonstration, maintain their own sales organization, supply spare parts and maintain a service division, if applicable. Partnering with a reputable local representative with excellent industry contacts, proven reliability, loyalty, technical suitability and after-sales service capability is a key factor to success in selling and maintaining a continued presence in the Israeli market. U.S. companies need to be aggressive in their pursuit of business opportunities and maintain an active in-country presence.
Despite the existence of a FTA between the United States and Israel, American products still encounter non-tariff barriers, which limit the use of American made aftermarket products for vehicles made according to U.S. homologation standards. In recent years, after-market products are now being accepted without hindrance on the basis of certificate of origin, manufacturers’ declaration and approval from recognized standards developing organizations. CS Israel and the U.S. Trade Representative are continually engaging the Ministry of Transport & Road Safety in an effort to reverse remaining restrictions on American made products.
Market Entry & Barriers