Source: Export.gov – June 2017

Israel’s Innovative Automotive Technology Industry

Electronic components have become an increasingly significant part of a vehicle, having risen in the past 10 years from 10% to 40%. Originally developed for use in the aerospace and defense industries, Israeli companies have successfully adapted these technologies to civilian use with groundbreaking automotive technologies. In recent years, Israeli companies have invented a number of breakthrough technologies including specialized materials, advanced electronics, communication systems, driver awareness systems, automotive IT and security. More than 150 Israeli manufacturers supply systems, parts, modules and tooling to both original equipment manufacturers (OEMs) and to supplier tiers, produce tool and production line systems, design and assemble buses and vehicles, manufacture after-market products, as well as developing advanced automotive technologies including innovative materials, advanced electronics and automation technologies, and clean tech initiatives.

“Israel exports nearly $1 billion worth of automotive parts and systems annually, many of which are utilized by leading manufacturers such as Daimler, Jaguar, BMW, VW, PSA, GM, MAN, Navistar, Renault-Nissan, FORD, Volvo, Chrysler, Scania, Fiat-IVECO, Toyota and Hyundai as well as to Tier 1 suppliers such as: Delphi, Bosch, Valeo, Autoliv, Faurecia, Johnson Controls and Magna Styer.”

Sub-Sector Best Prospects

Car security and anti-theft devices: anti-theft electronic systems, locking devices.

Car body: bumpers, radiator grills, hood and trunk lids, wings, front and rear lamps (i.e. the parts most vulnerable in car accidents). Service parts: disc brake pads, shock absorbers, front suspension parts, filters for oil and lubrication, air conditioning parts.

Replacement service parts: tires, fan belts, water hoses, water pumps, brake components, engine and transmission components, electrical components, undercarriage items that need replacing at the end of the warranty period. Vehicle accessories: car care products, polish, wax, upholstery spray water-coolants (Glycol) for radiators.  Electronic accessories: TV screens for the rear seats, GPS systems, sound systems etc. Universal lubricants: well-known brand names of high-grade oils, lubricating, glycol, wax. The market demands well-known brand names.

Representative in Israel

Partnering up with a reputable local representative who has excellent contacts in the industry, proven reliability, loyalty, technical suitability and after-sales service capability is a key factor to success in selling and maintaining a continued presence in the Israeli market. U.S. companies need to be aggressive in their pursuit of business opportunities and maintain an active in-country presence. The most common approach used by exporters is to obtain a local importer/distributor. Distributors will import on their own account, carry sufficient stock to satisfy ongoing demand or to use for demonstration, maintain their own sales organization, supply spare parts and maintain a service division, if applicable.