Israel's Passenger Car Market in September 2026: Chinese Brands Take Nearly Half of the Market as PHEVs Take Over from BEVs

Bob From Gasgoo
According to Gasgoo Data, Israel's passenger car market logged 24,162 registrations in September 2026, down 17.3% year on year (down 14.6% month on month). Chinese brands posted a total of 11,178 registrations, with their combined market share reaching 46.3% — nearly half of the entire market.

OMODA & JAECOO topped Chinese brands with 2,429 units, ranking second overall (up 7.3% year on year), with Chery (2,065 units) and BYD (1,910 units) following closely behind. Tesla Model Y (1,097 units) was the best-selling model overall. Israel's electrification penetration reached 46.5% (BEV 20.1%, PHEV 26.4%), as PHEVs took over from BEVs amid the phase-out of BEV purchase subsidies.

Brand Landscape

Toyota (2,687 units, down 4.0% year on year) held the top spot, while OMODA & JAECOO (2,429 units, up 7.3% year on year) surged to second. Chery (2,065 units, down 40.7% year on year) ranked third, followed by BYD (1,910 units, down 20.5% year on year) and Tesla (1,810 units, up 40.9% year on year). Chinese brands claimed five of the top ten positions, showcasing their cluster advantage.

Electrification

Electrification penetration reached 46.5% (BEV 20.1%, PHEV 26.4%, HEV+MHEV 34.2%), with ICE vehicles accounting for 19.3%. As policy shifts from low-tax stimulus to purchase-tax phase-out plus usage-based charges, BEVs have taken the hit while PHEVs — MG S9, Chery Tiggo 8 Pro PHEV and BYD Atto 2 DM-i — have become consumers' new favorites. Tesla led the BEV segment, with the Model Y (1,097 units) ranking first overall and the Model 3 (713 units) fifth; the PHEV segment is almost entirely Chinese, with MG S9 (971 units), Chery Tiggo 8 Pro PHEV (671 units), BYD Atto 2 DM-i (666 units) and JAECOO J8 PHEV (562 units) all ranking in the top ten.

Chinese Automaker Dynamics

OMODA & JAECOO: With 2,429 units, No. 1 among Chinese brands and second overall, rising across ICE, HEV and PHEV powertrains.
Chery: With 2,065 units, ranking third; models on sale are dominated by HEV and PHEV powertrains, with part of its volume absorbed by sibling brands.
BYD: With 1,910 units, ranking fourth; BEV sales were hit hard by the policy shift (down 20.5% year on year), with PHEVs (the Atto 2 DM-i) filling the gap.
MG: With 1,560 units, the fastest-growing brand in the top ten (up 194.3% year on year), with the S9 ramping up to rank second among all models.
XPENG: With 789 units, less affected by the policy retreat in the premium BEV segment, with the G6 becoming one of the most popular BEVs in the local market.
Geely: Entered the market on a BEV route, shifting its mainstay from the EX5 to the Starray EM-i.

Strategic Outlook

Israel's market remains volatile and is trending downward, yet the Chinese-brand share of 46.3% has already made them the absolute mainstay. The BEV subsidy phase-out has pulled BEV penetration down to 20.1%, making PHEVs the biggest beneficiaries of the policy retreat. OMODA & JAECOO's multi-powertrain push, the MG S9's ramp-up and BYD's PHEV fill-in all confirm that "diversified ICE/hybrid products + localized channels + scale pricing" is replacing "going global on BEV alone". As policy turns fiscal-neutral, Chinese brands must upgrade from a BEV-only approach to a full powertrain matrix spanning HEV/PHEV/BEV, converting the 46.3% share into a sustainable mainstream presence and building long-term barriers amid the pincer of Japanese brands and Tesla.

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