Chinese electric vehicle (EV) manufacturer, XPeng, has reaffirmed its commitment to global expansion by way of a recent shipment of 750 electric vehicles to Israel. This notable shipment, the largest single batch for the year, underscores XPeng’s aggressive push to extend its presence beyond its domestic market.
Via a strategic partnership with local partner Freesbe, XPeng aims to create a robust sales and service network across major Israeli cities, including Tel Aviv, Haifa, and Jerusalem, with plans to complete this network by 2024. Eric Xu, Vice President of International Markets at XPeng, views this move as a significant step toward establishing a foothold in Israel.
Israel loves Chinese EVs
Xpeng’s approach to Israel is part of a larger trend of an increasing number of Chinese EV manufacturers attempting to break into the Israeli market. The growing popularity of Chinese EVs in Israel is attributed to a number of factors, including their competitive prices, long ranges, and advanced features. Chinese EV makers are also investing heavily in marketing and sales in Israel, which is helping to drive demand for their products.
For the most part, these brands have done a fair job in finding success: Chinese brands accounted for over 62% percent of all EV sales in the first three quarters of 2023, according to statistics published by the Israel Vehicle Importers Association this week.
XPeng’s entry into the Israeli market, despite its strategic moves, doesn’t guarantee an effortless journey. The landscape is becoming increasingly competitive as more Chinese EV brands, like Chery Automobiles, Skywell, Aiways, and others, are making their presence known in Israel. However, this doesn’t imply that these newer brands will easily secure a substantial market share.
The Israeli EV market is currently firmly in the grip of four established leaders: Geely, BYD, Tesla, and Hyundai. These brands have already established a significant foothold in the country, benefitting from their early entry, robust product offerings, and strong manufacturer support. They also enjoy the advantage of well-established sales and service networks, built over time through partnerships with large importers.
As newer entrants like XPeng and others attempt to penetrate the Israeli market, they will face a challenging uphill battle. They must compete not only with the established leaders but also with the unique characteristics and preferences of the Israeli EV market. These challenges may include adapting their products to local consumer tastes, addressing supply chain issues, and establishing robust sales and service networks to gain a competitive edge in a market that is currently dominated by a select few.
