XPeng begins a high-stakes journey into the Israeli EV market

Max McDee, 10 July 2023

For every great explorer, there's a path less trodden, and for Chinese electric vehicle maker XPeng, that path seems to lead straight to Israel. In a surprising announcement, the company has struck a deal with Freesbe, a prestigious Israeli car dealership group, to bring XPeng's fleet to the Middle Eastern nation.

So, what's behind this grand expedition into Israeli sands? Turns out, Israel's set an ambitious agenda for going green, aiming for net zero emissions by 2050. They've even slapped a ban on the import of gas-guzzlers by 2030, welcoming only electric or natural gas-powered cars. Now, that's a market poised for an electric revolution, right?

What makes this journey even more interesting is XPeng's strategic choice. Unlike its local rival Nio, XPeng is not setting up shop directly in Israel, but partnering with an established dealership. Clever, or just playing it safe? Time will tell.

Xpeng begins a high-stakes journey into the Israeli EV market

XPeng's foray into Israel is not just about exploring uncharted territories. It's been there, done that, specifically in Europe. The company made waves with their flagship store in Sweden and stirred up buzz by letting customers pre-order the P5 sedan in four European countries. But then, it abruptly hit the brakes on the P5, shifting focus to the P7 sedan. A hiccup in the European strategy, perhaps?

Cut to present, XPeng's comeback features the launch of its G9 SUV and the P7 sports sedan, marking its return to the international arena. The partnership with Freesbe (formerly known as Carasso Motors) seems to signal the company's anticipation of improved sales performance following the launch of the new G6 SUV in China.

However, before we break out the champagne and celebrate XPeng's expansion, let's be mindful of the company's recent roller-coaster ride with deliveries. From a staggering 15,295 units in June 2022 to a low of 5,218 in January 2023, their performance graph resembles a high-octane racetrack. Thankfully the sales bounced back to 8,620 vehicles in June suggesting the recovery is underway.

Xpeng begins a high-stakes journey into the Israeli EV market

Quick look at the price tag on the G6 reveals XPeng's strategy. Its base price significantly undercuts its main rival, Tesla Model Y, and it seems XPeng is hoping for a David-versus-Goliath moment. So far, the 35,000 pre-sales orders suggest XPeng's may have a fighting chance.

XPeng isn't the only or the first Chinese carmaker to set its sights on Israel. Leapmotor launched showrooms in Israel back in 2022. BYD is already selling its EVs in Israel with Atto 3 even snagging the title of the country's best-selling model.

Israel is a potential EV goldmine, so to speak. With low electricity prices, high fuel costs, and generous tax breaks for EV buyers, it sounds like a perfect market for any EV manufacturer. But, with local and international rivals already on the scene, will XPeng's venture into the Middle Eastern oasis bear fruit or will it be lost in the sand? In the world of EVs, it's not just about who arrives first, but who can stand the heat and stay in the game.



Reader comments

Then why can't we buy cars directly from the manufacturer? Why is every import license "exclusive" for the "Official importer"? In the West, there are rival agencies that sell cars. You can go from one to another to...

  • Anonymous

First of all there’s no such thing ‘cartel’ in Israel it’s not Mexico .. second of all Renault didn’t succeed there because it’s pretty much the worst cars made..

Carasso Motors is one of the worst Israeli car distributors in the Israeli auto cartel. They are the main reason why Renault is failing in Israel. Legendarily terrible customer service. It would have been much better for everyone if Xpeng j...



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