Vehicle Import Reform Gets Green Light in Israel

The Israeli Parliament approved yesterday the reform in vehicle importation promoted by the Ministry of Transportation. This move will allow new players to enter the industry, expand the range of models, and significantly reduce the cost of purchasing a vehicle. The reform increases the volume of imports by small importers and expands the variety of vehicles that can be sold in Israel, expected to save thousands of shekels per year for the Israeli family, improve service, and increase transparency in the automotive industry.

The Parliament approved yesterday in the second and third readings an amendment to the Licensing Services and Professions Act in the automotive industry, which significantly increases the volume of activity of small car importers, and allows them to import up to 60 vehicles per year - three times the amount allowed so far. The arrangement is set as a temporary order for a period of four years starting from August 19, and is expected to encourage the import of vehicles at an accessible price to the public.

In addition, the amendment now adds motorcycles and tractors to the list of vehicles that can be imported in small or indirect quantities, so the direct importer's obligation to provide service, treatments, and warranty fulfillment will now also include them, and not just passenger and commercial vehicles as before.

A vehicle owner, even if he did not purchase it from the direct importer, will be able to receive all maintenance services, repairs, and handling of serial safety faults ("recall"), as stipulated by law.

The amendment to the law is designed to expand the supply and variety in the market, ensure service and transparency, and encourage competition both in vehicle prices and in the level of service to the consumer. The Minister of Transportation will be able, with the approval of the Knesset's Economic Committee, to extend the validity of the instructions for up to four years.

Transportation Minister Miri Regev: "Reducing the cost of living is a central goal in the ministry's policy. The amendment approved today will open the car market to real competition, allow the import of a wider variety of models, and directly affect the reduction of vehicle prices. This is real good news for all Israeli citizens, whose vehicle expenses are a significant component of their expenditure basket. This is another step in a series of steps designed to save the public thousands of shekels a year. We will continue to promote transparency, fairness, and competition throughout the vehicle lifecycle, from purchase, through maintenance, to sale."