The end of the price war? Chinese car importers notified leasing companies of price hikes in 2027

Chinese car importers have notified leasing companies of an expected price increase starting in the first quarter of 2027, following a reduction in VAT refunds for electric vehicle exporters in China. The price hike is expected to mainly affect budget models, but large inventories may delay the impact until the third quarter of 2027.

Importers of Chinese car brands have notified major leasing companies in Israel of an expected price increase starting in the first quarter of 2027. The main reason is the decision by China's Ministry of Finance and Tax Administration in October 2026 to reduce the VAT refund for exporters of electric, hybrid, and plug-in vehicles from 13% to 9% effective April 1, 2027. Additionally, at the beginning of January 2027, the VAT refund on battery exports will be completely eliminated. Investment houses and economic commentators in China estimate that the impact will be felt mainly on budget and popular models, which constitute the majority of sales in Israel, and that the net profit per vehicle could be reduced by hundreds of dollars. However, due to the large inventory buildup by Israeli car importers, the actual price increase is expected to be noticeable only toward the third quarter of 2027. The article also reports on the expansion of Calmobil's operations in Europe with the GAC franchise in the Czech Republic and Slovakia, and the launch of new BMW models in Israel, including electric versions with a driving range of up to 905 km.