Chinese Car Importers Reportedly Warn Israeli Leasing Firms of 2027 Price Rises

Importers of Chinese vehicle brands have reportedly warned large Israeli leasing companies this month to expect price increases beginning in the first quarter of 2027. The warnings were disclosed on November 12, against the background of reductions in Chinese export tax rebates. The importers and leasing companies were not named. China’s Ministry of Finance and State Taxation Administration announced on October 12 that the export value-added-tax rebate for new-energy vehicles will fall from 13% to 9% on April 1, 2027. Their announcement says the applicable rebate is determined by the export date recorded on the customs declaration. A separate announcement, dated January 8, sets a different timetable for battery products. Their export VAT rebate fell from 9% to 6% on April 1, 2026, with that reduced rate continuing through December 31. The battery rebate is to end on January 1, 2027. Israeli industry estimates in the report suggest accumulated vehicle inventories could postpone the main effect on consumers until the third quarter of 2027, although some list prices could change as early as January, depending on the dollar exchange rate. The report also says large inventories could sustain discounts and promotions. Its assessment is that cheaper Chinese models with thinner margins face greater pressure from the rebate reductions.