The car market in Israel suffers from a significant scarcity of supply, a month after Turkey imposed a trade embargo on Israel due to the latter’s continued aggression against the Gaza Strip, which left car importers facing difficulties in providing the market’s requirements, according to what the Israeli newspaper Yedioth Ahronoth reported.
Turkey stopped commercial transactions with Israel (export and import) early last month, after it was preceded by a decision to ban the export of 54 goods, mostly related to construction materials.
No viable solutions, such as importing via a third country or sourcing cars from other factories, have emerged due to logistical difficulties, and the impact is set to be felt in full sales figures for May due to be published by the Israel Automotive Importers Association later today.
Cars from Türkiye
Israel imports many popular models from Turkey, including the Toyota Corolla, C-HR, Hyundai i10, i20, Bayonne, Renault Megane, Clio, Ford Transit, and trucks.
The newspaper quoted sources as saying that Türkiye announced the ban one day before about a thousand cars were shipped to Israel.
She pointed out that the effects of the ban have already become clear, as Hyundai is likely to lose its market leadership to Kia, as Turkish-made models constituted a third of Hyundai shipments in Israel during the first quarter.
Since the beginning of the year, about 8,700 cars have entered Israel from Turkey, making the latter the fifth largest export market to Israel and holding an 8% share of the local market. Last year, 23,600 cars from Türkiye were sold in Israel.
A disturbing message
As the Turkish trade embargo worsens, car importers that rely on Turkish production will continue to face challenges, especially with cars from Toyota and Hyundai, as the suspension of popular models is expected to significantly impact cash flows.
According to the newspaper, apart from the direct crisis faced by car importers, the success of the ban sends a worrying message globally, adding that the Israeli Foreign Ministry, led by Yisrael Katz, must intervene to formulate a strategy to prevent other countries from following Turkey’s example.
