Chinese electric-vehicle (EV) manufacturer XPeng has reaffirmed its commitment to global expansion with a recent shipment of 750 electric vehicles to Israel. The 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 said it aims to create a robust sales and service network across major Israeli cities, including Tel Aviv, Haifa, and Jerusalem, and plans to complete this network by 2024.
The move is a significant step toward establishing a foothold in Israel, according to Eric Xu, XPeng’s vice president of international markets.
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 more than 62% of all EV sales in the first three quarters of 2023, the Israel Vehicle Importers Association reported this week.
XPeng’s entry into the Israeli market, despite its strategic moves, does not guarantee an effortless journey. The landscape is becoming increasingly competitive as more Chinese EV brands, including Chery Automobiles, Skywell, and Aiways, make their presence known in Israel. Nevertheless, this does not guarantee that these newer brands will easily secure a substantial market share.
The Israeli EV market is firmly in the grip of four established leaders: Geely, BYD, Tesla, and Hyundai. These brands have already established a significant foothold in the country, benefiting from their early entry, robust product offerings, and strong manufacturer support. They also enjoy the advantage of well-established sales and service networks that were built over time through partnerships with large importers.
As newer entrants such as 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.