Israeli car buyers are facing a shortage of popular models as Turkey bans exports to Israel, Yedioth Ahronoth reported, in the wake of its nearly 10-month-old war on the Gaza Strip.
Turkey, through its Ministry of Trade, banned all exports and imports to and from Israel last May after the “deterioration of the humanitarian tragedy” in the Palestinian territories.
According to the newspaper, cars such as the Toyota Corolla, which are produced in Turkey, will not be available in Israel after Turkish President Recep Tayyip Erdogan stopped all exports to Israel, including vehicles manufactured by global companies in Turkish factories.
Turkey has been one of Israel’s largest vehicle suppliers and the largest exporter outside the Far East, and the boycott is expected to extend beyond the war, with importers ruling out the return of Turkish-made cars to the Israeli market for years.
Automakers benefit from producing vehicles in Turkey due to generous subsidies, its strategic location between Europe and Asia, and low production costs despite its proximity to Europe.
No plans
However, they have no plans to pressure the Turkish president to resume exports to Israel, the newspaper said, and as a result, importers and traders will need to explore alternative markets in countries that have not exported cars to Israel before.
This shift entails additional costs to integrate Israeli legal requirements into production lines and higher transportation fees because the sea voyage from Turkey takes only 4 days, Yedioth Ahronoth reported.
According to the newspaper, some car dealers in Israel may try to bypass the ban by purchasing cars made in Turkey through intermediaries, but this would increase costs.
Chinese cars are likely to take a larger share of the Israeli market as importers seek to replenish their stocks, the paper said. However, challenges may arise in the future, as Chinese manufacturers plan to produce vehicles in Turkey for the European market and limit production in China for domestic use.
Overall, Israel ranked 13th in Türkiye’s exports in 2023, with exports to it amounting to $5.42 billion.
According to the Israeli Central Bureau of Statistics, Israel exported $1.5 billion worth of goods to Turkey in 2023, down from $2.5 billion in 2022.
