In a short time window: get ready for a flood of new cars from China

A Globes reporter analyzes the expected flood of new cars from China to Israel in a short time window, due to three deadlines: Euro 7 regulations, reduction of VAT refund in China, and EU export quotas. Manufacturers and importers are accelerating imports to preempt the changes, and competition is expected to manifest in promotions and discounts.

Dubi Ben Gedalia's article in Globes analyzes the factors behind the expected flood of new cars from China to Israel in the short time window of late 2026 and early 2027. Three key deadlines are accelerating imports: the entry into force of the stringent 'Euro 7' emission regulations in the European Union on November 29, 2026; the reduction of VAT refund on exports of green cars from China from 13% to 9% starting April 1, 2027; and rigid export quotas that the EU is expected to impose on Chinese hybrid and plug-in cars, starting December 2026. Additionally, the increase in purchase tax on electric cars in Israel to 83% (postponed to February 10, 2027) provides another incentive for importers to stock up early. The article notes that competition is expected to manifest in promotions and discounts, and that Chinese manufacturers are also focusing on more expensive premium models, although this segment has so far encountered a price glass ceiling in Israel.