Israeli car buyers face a shortage of popular car models as Turkey enforces a boycott on exports to Israel. Models such as the Toyota Corolla, produced in Turkey, will no longer be available after Turkish President Recep Tayyip Erdoğan halted all exports to Israel, including vehicles manufactured by global companies in Turkish factories.
Turkey was one of Israel's major vehicle suppliers and the largest exporter outside the Far East. The boycott is expected to extend beyond the war, with importers predicting that Turkish-made cars will not return 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 lower production costs despite its proximity to Europe.
However, they have no plans to pressure Erdoğan to resume exports to Israel. As a result, importers and dealers will need to explore alternative markets in countries that have not previously exported cars to Israel.
This shift will involve additional costs to integrate Israeli legal requirements into production lines and higher transportation fees since the sea journey from Turkey is only four days.
Some car dealers may attempt to bypass the boycott by purchasing Turkish-made cars through intermediaries, but this would also increase costs.
Consequently, Chinese cars are likely to occupy a larger share of the Israeli market as importers seek to replenish their stocks.
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.