Major Automotive Global Trends - September 2025

Global

Global EV sales growth rate slows in August to 15%

Global growth rate of EVs and PHEVs sales slowed to 15% in August, according to market research firm Rho Motion. About 1.7 million such vehicles were sold worldwide in August, the company said.

The Chinese market accounted for about half of global sales in this segment, with an average monthly growth rate of about 36%. However, China’s growth rate fell to 6% in August, the lowest level in seven months, with sales of 1.1 million units. The researchers expect the rate to accelerate in the last quarter of this year, thanks to new government subsidies for EVs and a seasonal recovery.

At the same time, sales of EVs and PHEVs in other markets grew, partially offsetting the weakness in China. The US market saw a surge in demand due to the upcoming expiration of the federal electric vehicle tax credit at the end of the year, while the European market maintained momentum thanks to incentives aimed at accelerating emissions reductions.

In August, EV and PHEV sales in Europe jumped 48% to 283,453 units, the North American market grew 13% to 201,255 units, and sales in other regions of the world jumped 56% to more than 144,280 units.

The researchers note that US EV sales peaked in August and are expected to continue this momentum in September, but are expected to decline sharply thereafter.
 

USA

American auto manufacturers may save billions in light of President Trump’s initiative to ease emission demands

The deregulation of new vehicle emissions regulations in the US, announced by President Trump in August, has not yet been implemented. However, it is already prompting Detroit’s veteran automakers to divert funds originally earmarked for EV development and environmental compliance.

The Trump administration’s new $3.4 trillion tax package eliminates the $7,500 tax credit for EV buyers, effective September 30, while also eliminating penalties for manufacturers that fail to meet fuel economy and emissions standards. It also eliminates the need for manufacturers to purchase “Green credits” to meet regulatory requirements. Stellantis, for example, paid $190 million in fines for pollution violations in each of the past two years.

Separately, the US Environmental Protection Agency (EPA) has proposed rolling back a significant portion of vehicle greenhouse gas emissions limits. President Trump has already signed a bill repealing similar limits in California.

Senior officials in the American auto industry said that "There has been a real change in the decision-making and policy direction of the EPA in the US". The industry estimates that the main beneficiaries of these moves will be the divisions of automakers that develop and produce ICE vehicles. Some manufacturers have already begun to convert assembly lines originally intended for EVs to the production of large pickup trucks and SUVs, which are particularly profitable.

On the other hand, environmentalists have accused the Trump administration of undermining long-term policies to reduce vehicle pollution, which is a major source of emissions and global warming. It should be noted that under the Biden administration, the EPA led a line designed to reduce carbon dioxide emissions from vehicles by about 7 billion cubic tons, and save drivers about $6,000 in fuel and maintenance costs.

Over the years, domestic automakers have sharply criticized the standards, which they claim were so strict that they forced them to produce and sell more electric models than the market demanded. Now, they are welcoming Trump's initiative to significantly ease emissions standards, which stems from a stated goal - to create new local jobs by easing regulations, while adopting a policy of imposing tariffs on imported vehicles and parts.

However, analysts in the US say that the profit that American manufacturers will make from easing environmental standards will only partially offset their additional costs, derived from the tariffs.

The US tax credit for EVs ended

The tax credit for new and used EVs in the US expired at the end of September. A decision on the matter was made in the summer at the initiative of the Trump administration that completely eliminates the $7,500 tax credit for the purchase of new EVs and the $4,000 tax credit for the purchase of used EVs.

However, several automakers continue to try to convince their dealers across the US to sign up for manufacturer financing programs that would extend the benefit for leasing EVs beyond September.

Under the program, manufacturers, together with their financing providers, pay a down payment for vehicles that are already in the dealerships' inventory but have not yet been sold to customers. These down payments entitle the lenders to a $7,500 tax credit, which they pass on to the vehicle buyers as part of the lease payments. Manufacturers are aiming to clear current inventories amid fears that demand for EVs will collapse due to the elimination of the subsidy.

Experts estimate that there was a sharp increase in EV purchases in September, likely to take advantage of the subsidy. However, a sharp decline in sales figures in the segment is expected in the fourth quarter, similar to the market slump in Germany following the sudden end of the government bonus at the end of 2023.

Europe

The EU’s “Automotive summit”: the EU Commission flexes positions and examines incentives to encourage small, cheap EVs

In September, the EU held an "Automotive summit" with the participation of senior officials from the European Commission and the European automotive industry. At the event, the Commission President stressed that the EU continues to adhere to the ultimate goal of banning the sale of CO2-emitting vehicles in the EU from 2035 and believes that achieving it is realistic. However, she said that there is a willingness to continue the dialogue with the automotive industry and reach a compromise on some of the interim steps along the way.

Among other things, the process of re-examining the interim targets set in the original emissions regulations will be brought forward from 2026 to December 2025. The Commission is also considering establishing a new category of "Small EV", which will receive tax incentives and additional credits to help achieve the European automotive industry's carbon dioxide reduction targets.

It should be noted that in recent months, senior executives and lobbyists from the automotive industry have been conducting a public campaign against the decision to ban the sale of ICE vehicles in Europe starting in 2035. Only recently, Mercedes CEO and ACEA President Ola Källenius wrote a letter to the Commission demanding that the EU “Adapt its policies to today’s geopolitical and economic realities, otherwise it will endanger one of its most successful and competitive industries in the world.”

He demanded that the Commission allow the continued sale of plug-in vehicles, hydrogen vehicles, and vehicles that consume carbon-free fuels, even after 2035. On the other hand, senior figures in the European automotive industry called for the emission targets not to be changed.

The summit decided that, in order to clarify the issue, two joint working groups would be established for the EU and the industry. The first would examine the question of which technologies and fuels the EU should use to achieve the planned target for 2035. The second working group would develop the proposal to establish a new category of “Affordable small EVs.”

European media reported that the EU Commission understands that the situation of the European automotive industry is structurally challenging and strong, and determined assistance action is required. The European Commission has already taken a number of steps, designed to make things easier for the industry, including relaxing the 2025 carbon dioxide reduction target, exempting electric trucks from the toll, and more. The European Commission is also leaving a "Back door" open for combustion engines: the ban on the sale of plug-in hybrid vehicles may be eased. Decisions on this issue are not expected before 2026.

The US finally signed the imposition of a 15% “Only” tariff on vehicles imported from the EU

On July 27, Donald Trump and the President of the European Commission, Von der Leyen, agreed on the level of reciprocal tariffs to be imposed between the two sides. However, since then, EU car manufacturers have been anxiously awaiting final approval of the tariff reduction from 25% to 15%. The US administration delayed final approval, but at the end of September, it announced that the reduction would come into effect, with it taking effect retroactively from August 1.

The final agreement is an extension of the basic agreement from July 27. Regarding car exports, the partners stipulate that the US will reduce its tariffs from 25% to 15% retroactively from August 1, on the condition that the EU begins the legislative process to eliminate tariffs on a number of products imported from the US (including all US industrial goods and many food products).

The EU also commits to purchasing $750 billion worth of liquefied natural gas, oil, and nuclear energy products from the US, as well as $40 billion worth of chips, by 2028. In addition, EU companies are to invest an additional $600 billion in strategically important US sectors. The agreement is not legally binding, meaning that any partner can cancel it. The 15% tariff on vehicles is unilateral: it will be imposed on imports of European vehicles into the US but not on imports of American vehicles into the EU. In addition, a 15% tariff will be imposed on EU-made car parts and a 25% tariff on EU-made commercial vehicles. Also, there are additional 50% tariffs on a range of steel and aluminum products produced in the EU. 

The European Parliament approved the reform of vehicle recycling, which includes designing vehicles that are easy to recycle, widespread use of recycled plastics, and imposing the recycling responsibility on the manufacturer

In early September, the members of the European Parliament approved a legislative proposal to encourage the recycling of vehicles throughout their entire life cycle, from design and engineering to final dismantling at the end of the vehicle's life. The reform, which was proposed as early as 2023, was adopted by a majority of 431 MEPs, with 145 against and 76 abstentions.

The stated aim is to encourage the transition of the European automotive sector to a "Circular economy" by reducing the environmental impact of the vehicle production and recycling process.

According to EU data, there are approximately 286 million motor vehicles on European roads, with approximately 6.5 million vehicles reaching the end of their lives each year, the majority of which become hazardous waste due to the lack of binding recycling rules and the lack of economic viability of recycling a large part of the vehicle's contents.

The new reform sets out specific rules that will apply to all vehicles, with the exception of special purpose vehicles, vehicles designed and built for security use, fire and emergency medical services vehicles, and vehicles of "Special historical and cultural interest”.

The regulations state that new vehicles must be designed from the production line in such a way that most of their parts and components allow for easy dismantling in authorized treatment facilities, with the aim of reusing, recycling, remanufacturing, or refurbishing them, if technically possible.

Among other things, the regulation states that 20% of the plastic used in new vehicles must be from recycled sources within six years and at least 25% within 10 years of the entry into force of the regulations. This is provided that sufficient recycled plastic is available on the market at "Reasonable" prices. The rules also set targets for the recycling of steel, aluminum, and alloys in vehicles, subject to a feasibility study.

Three years after the new rules come into force, manufacturers will have to offer extended vehicle recycling responsibilities. This means they will have to cover the cost of collecting and treating vehicles that have reached the end of their life. The reform also aims to achieve a more precise distinction between “Used” and end-of-life vehicles (“Legally lost”), with vehicles that are no longer roadworthy banned from being exported outside the EU.

According to Parliament’s Environment Committee, which promoted the legislation, “Parliament supports a circular economy in the automotive sector. We promote resource security, protect the environment, and ensure sustainability. To avoid harming the industry, we have set realistic targets with less bureaucracy and fair competition.”

However, in Europe, the final version of the reform is being criticized, which sets much softer and more lenient targets for the automotive industry compared to the original proposal, which included an accelerated timetable and stricter targets for recycling.

New research: most European auto manufacturers are close to meeting emission reduction targets

New research, published in September by the European Federation for Transport and Environment (T&E), an industry research organization that works in the environmental sector, showed that thanks to the expected significant growth in sales of new EVs, almost all European car manufacturers are expected to achieve the carbon emissions targets set by the EU for the years 2025-2027.

The T&E study predicts that sales of EVs by European car manufacturers will improve significantly in the second half of 2025.

The study notes that the decline in global battery prices has allowed major car manufacturers to launch cheaper electric models, and together with the rapid development of charging infrastructure, the market demand for EVs is expected to continue to grow. The report predicts that by 2027, the share of fully EVs in the EU’s total car market will rise from 18% this year to over 30% next year.

The organization said this was a sign that the EU’s current carbon emissions targets were effective and stressed that “Softening” the next phase of targets, for 2030 and 2035, would shake investor confidence in the EV sector and could further widen China’s lead in the EV sector.

The report’s authors say: “Europe now faces a critical choice: lead the global race for fully EVs or stick to tradition and risk falling behind in the oil age.”

However, several European carmakers have recently stated that future carbon emissions targets, including a 100% reduction by 2035, are unattainable. In March this year, the European Commission, under pressure from European carmakers, made concessions and allowed carmakers to meet carbon emissions targets for private and commercial vehicles over a period of three years instead of one. If they fail to meet the targets, carmakers are expected to face huge fines.

France: an additional bonus for EVs made in Europe

The French government plans to introduce an additional €1,000 incentive for the purchase of an EV on October 1, provided that the vehicle is manufactured or assembled in Europe and is equipped with a European-made battery. The new incentive will be granted in addition to the existing environmental incentive.

France’s environment minister said: “Ecological change is a lever for reindustrialization… By increasing the environmental bonus by €1,000, we are promoting EVs, whose batteries are made in Europe and whose production is characterized by reduced greenhouse gas emissions. It is a win-win situation for purchasing power, the climate, and industry. It makes EVs more accessible to the French while at the same time promoting industry and employment.”

It should be noted that while government subsidies for EVs have been completely eliminated in Germany and reduced in other countries, French households are still eligible for an “Ecological bonus” of up to €4,200 for purchasing an EV, depending on their income. Eligible vehicle models must achieve a minimum environmental score. Commentators estimate that the increase in the subsidy is due to a decline in demand for EVs in France by 2025.

With the additional €1,000, the maximum subsidy now rises to €5,200 for EVs assembled in Europe and whose batteries are manufactured in Europe. France itself is building a battery industry in the north of the country, but Hungary and Germany are also developing battery industries. However, the number of vehicle models equipped with European batteries is currently limited, so the subsidy will only be relevant to a limited number of customers.

The French government stressed that, in the face of the trade war and fierce international competition, Europe must strengthen its own production, and that France defends this vision and confirms that self-production is a prerequisite for sovereignty. Environmental ambitions are a lever for reindustrialization. The incentive announced today is intended to promote the transfer of the EV value chain and support industrial employment on our continent.

In addition to the environmental bonus and the new €1,000 bonus, the French government also announced this summer the revival of its EV leasing program for low-income households, which was suspended in February 2024. This time, its budget amounts to approximately €370 million and will cover at least 50,000 EVs.

China

The Chinese Ministry of Industry and Information Technology intends to issue a national mandatory standard for advanced automotive safety systems

In September, China's Ministry of Industry and Information Technology published a new national standard for public review and comment, entitled "Safety Specifications for Integrated Driving Assistance Systems of Smart and Connected Vehicles."

The standard is designed to prevent drivers from misusing and overly relying on smart safety systems. It defines measures that will require drivers to know and understand the functional limitations and operating specifications of the systems before operating them, and requires, among other things, that after each start of the vehicle, drivers must confirm that they have received relevant training in operation. In addition, the standard stipulates that if the driver uses the assistance system illegally, the system will be temporarily disabled.

According to experts, this standard closes an important regulatory gap that existed in China regarding integrated driving assistance systems and provides important technical support for drivers. The drafters of the standard emphasize that driver assistance systems, which are common on the market, do include functions that perform part of the driver's physical driving processes, but they are not equivalent to autonomous driving systems and cannot identify and respond independently to all events and scenarios that may occur while driving on public roads.

Drivers are still required to continuously monitor the vehicle's internal and external environment and take an active part in dynamic driving tasks to ensure driving safety.

The standard also requires the installation of advanced control systems in the passenger compartment, which will ensure that drivers do not take their eyes off the road and/or their hands off the steering wheel. If they do so and ignore the warnings, the system will be temporarily disabled. If the phenomenon is repeated several times, the use of the driving assistance system will be completely discontinued for an extended period of time.

The standard also precisely defines the intended operating conditions of the systems under a wide range of scenarios, and requires that they be operated only in accordance with them. The standard sets technical requirements such as protecting information security and data logging. In addition, binding rules have been set for the use of remote vehicle software updates (OTA), which relate to driver assistance systems. The drafters of the standard say that: “Such OTA updates should be carried out with caution and only when the technology is mature.”

According to Chinese government data, in the first seven months of 2025, the number of new passenger vehicles in China equipped with advanced driver assistance systems with “Near-autonomous” capabilities reached 7.76 million, an increase of about 21% compared to the same period. Their market penetration rate was about 62%.

China readies for its next five-year automotive plan

The Chinese government’s current five-year plan for the automobile industry, which ends in 2025, has been one of the most important and decisive in the history of the Chinese automobile industry. During it, China has established its global leadership in the field of “Green” vehicles, become the world’s largest automobile exporter, and has succeeded in conquering new markets around the globe.

Therefore, many in the global automobile industry are now showing great interest in the new plan for the next five years, which is currently being formulated by the Chinese government. Clues to its nature were provided in September at the “International Forum for the Development of the Automobile Industry”, which was attended by senior Chinese government officials, including those from the Ministry of Industry and Information Technology, the ministry responsible for the sector.

According to officials at the forum, “China will increase the consumption of domestically produced vehicles and improve regulations to ensure stable and high-quality growth of the auto industry, while facing challenges such as unregulated competition... The Chinese government will streamline tax incentives for EVs and promote the adoption of EVs in rural areas.”

According to the plan, in 2025, about 32 million vehicles will be sold in China, of which 15.5 million will be EVs and PHEVs, an increase of 20% compared to 2024. The targets for the coming years have not yet been announced.

The plan also presents measures to curb the destructive price war prevailing in the Chinese auto market, through cost investigations, government price monitoring, and consistent product testing, while requiring major manufacturers to honor commitments to payment terms to suppliers.

A representative of the Chinese Ministry of Commerce noted that the Ministry of Commerce will implement a reform aimed at eliminating barriers to car consumption, moving from “Purchase management to usage management”. One example is the program to scrap old, polluting vehicles as a condition for receiving subsidies for purchasing a less polluting vehicle. In 2025 alone, about 8 million car owners responded to this offer. According to estimates published at the conference, in the coming years, the green vehicle sector in China is expected to register slower but steady growth.

Data published at the conference show that the penetration of electric and plug-in vehicles in the Chinese market currently stands at 45.5% of total new car sales, far exceeding the 20% target set by the current plan from 2020. Government officials estimate that by 2030, the number of EVs and PHEVs on China’s roads is expected to reach 100-160 million units.

As mentioned, 2025 marks the end of China's 14th Five-Year Plan period, and the forum noted that thanks to the rapid transition to green transportation, CO and VOC (Volatile Organic Compounds) emissions have decreased by 31% and 13%, respectively. The sales share of old-fashioned heavy-duty trucks with diesel engines has fallen from 59% in 2020 to 30% in 2024, while sales of electric heavy-duty trucks have increased from about 1% in 2020 to 18% in August 2025.

During the 14th Five-Year Plan period, China's automobile industry has moved from a quantitative advantage to a qualitative and competitive advantage, but it still faces challenges such as bottlenecks in the supply of automotive chips and international trade barriers.

Government officials said that the next plan will include strengthening independent innovation, promoting intelligent vehicle-to-cloud connectivity, and deepening international cooperation. "The coming period will undoubtedly be a critical stage on the path of Chinese automakers becoming global players... Globalization will no longer be limited to simple product exports, but will include global expansion, encompassing technology, brands, manufacturing, supply chains, and cultural values."

Turkey

Turkey presents a new tariff program for imported vehicles

In September, the Turkish Ministry of Trade announced a new plan to impose tariffs on imported vehicles, which will come into effect in the second half of November. The plan will have a particularly negative impact on the import of EVs.

The tariffs will be imposed on vehicles originating from countries outside the EU, with which Turkey does not have free trade agreements. The Turkish Ministry of Trade said that the purpose of the tariffs is to strengthen domestic vehicle production and that "The government continues its efforts to protect domestic and national production against the pressure of intensive imports and unfair competition, while protecting jobs and reducing the current account deficit."

According to the plan, ICE and hybrid vehicles, excluding PHEVs, will be subject to a tariff of at least 25% or up to $6,000 per vehicle, whichever is higher. PHEVs will be subject to a 30% tariff or at least $7,000 per vehicle, while EVs will be subject to a 30% tariff or at least $8,500 per vehicle, whichever is higher.

At the same time, the special 60% tariff on imported American vehicles, which has been in place in Turkey since 2018, will be eliminated and made equal to the tariffs imposed on other imported vehicles. Analysts estimate that the move will particularly affect imports of global car brands that do not have local production, including Chinese-made vehicles, except for those manufactured in Turkey.

Mexico

President of the Mexico-China Commerce Chamber: The Mexican tariff program delays Chinese investments

In September, Mexican President Claudia Sheinbaum Pardo announced a series of measures she said were intended to “Protect Mexican industries”. Among them was a proposed 50% tariff on some Chinese goods imported into Mexico, including cars, auto parts, and steel.

This move sparked public opposition from the Chinese government, which urged Mexico to reconsider its decision to impose the tariffs.

The plan, which is awaiting approval by the Mexican Congress, includes a list of tariffs that would be imposed on more than 1,400 categories of products, including cars and parts. It does not specifically address China and is aimed broadly at goods from countries with which Mexico does not have trade agreements, including South Korea and India. However, car imports from China are at the center of them. The proposed import duties range from 10% to 50%, depending on the product category.

Since Mexico’s ruling party holds a clear majority in both houses of Congress, the law is expected to pass. The tariffs will take effect 30 days after they are published in Mexico’s official records.

Meanwhile, the announcement of the tariffs has created uncertainty and caused several major Chinese companies to delay their investment plans in the country, according to the president of the Mexico-China Chamber of Commerce.

In an interview with international media, she stated that the Mexican government’s plan to impose tariffs on Chinese goods will limit Chinese investment in the country, and she expects a slowdown in Chinese investment in several Mexican industries, including the production of vehicles, auto parts, and metals.

She said: “The business models and financing conditions of Chinese companies to build factories in Mexico have completely collapsed”. However, she refrained from disclosing the names of the companies whose investments have been delayed.

The Mexico-China Chamber of Commerce said the tariffs would have unprecedented inflationary effects and hurt consumers. Moreover, since the tariffs specifically target EVs, which are not manufactured in Mexico, they could also delay Mexico’s energy transition to green energy.

The chamber’s president called on the Mexican government to reconsider the plan, saying that imposing restrictive tariffs could lead to these products flooding into Mexico through illegal channels and being sold on the black market, reducing the country’s tax revenue. “Everyone loses money, so the Mexican government must carefully evaluate how to implement the tariffs”.

South Korea

The negotiations between the US and South Korea regarding car tariffs and visas are still “Stuck”

On September 19, senior officials at the South Korean Ministry of Trade announced that the country is continuing consultations with the US on several issues that remain controversial around the new trade agreement. Among them, visa restrictions for workers in the auto industry and the imposition of tariffs on vehicles.

Senior Korean government officials met during the month with a representative of the US Department of Commerce and other American lawmakers in order to advance negotiations between the two countries. The Koreans urged the US to quickly resolve the visa problem, which is affecting the work of Korean workers in the US, including workers in the auto industry.

It should be noted that in early September, more than 300 South Korean workers were arrested at the battery plant, located in Georgia, jointly owned by Hyundai and the energy division of the Korean companies LG, for lack of work visas. The workers were released and returned to South Korea. However, this activity increased tensions between the two countries and cast a shadow over the prospects of fulfilling the Korean government's commitments to significant investment in the US.

It should be noted that the framework agreement, which was agreed upon earlier, imposes a 15% tariff on South Korean goods exported to the US, but the date of its completion is still unknown. This is due to disputes over the structure and implementation of the $350 billion US investment package, to which the South Korean government has committed, and which is a central component of the agreement.

According to reports, $150 billion of this amount will be dedicated to shipbuilding cooperation between shipyards in South Korea and the US, while the remaining $200 billion will be reflected in direct investments, loans, and guarantees.

The issue of auto tariffs has not yet been resolved, as the US president has not yet signed an executive order to reduce the tariff rate to 15%. At the same time, the US signed a trade agreement with Japan, which resulted in a reduction in tariffs on Japanese cars and auto parts from 25% to 15%. This situation puts South Korean automakers at a disadvantage compared to Japanese manufacturers.

South Korean car exports grew by more than 8% in August due to high demand from Europe

The Korean auto industry has taken the new tariffs imposed by the Trump administration on Korean vehicles exported to the US very negatively. But at least for now, it seems that the industry is coping well with the challenge. Recent data, published by the Korean Ministry of Trade in September, showed that despite the trade war, South Korea's auto exports in August increased by 8.6% compared to August last year and stood at about $5.5 billion, a record figure for this month.

The increase is mainly explained by the strong demand for EVs in the European market. Quantitative exports grew by 5.5% annually to more than 200,000 units between January and August this year, while the cumulative monetary value of South Korean auto exports during this period amounted to about $47.7 billion, another historical record.

According to the Korean Ministry of Trade, demand for domestically produced vehicles increased in most of the world, except for North America. South Korea’s auto exports to North America fell 8.3% in August to $2.55 billion, mainly due to a 15% drop in exports to the US to $2.1 billion due to a 25% tariff.

In contrast, South Korea’s auto exports to the EU jumped 54% in August to $792 million, with exports to Germany and the Netherlands up 118.7% and 110.3% respectively, exports to the UK jumped 115.7% year-on-year to $250 million, and exports to Turkey rose 96.1% to $100 million.

Korean auto exports to Asia rose 9.3% to $591 million, auto exports to the Middle East rose 9.8% to $369 million, and vehicle exports to Oceania rose 20.1% to $344 million.

Exports of environmentally friendly vehicle models, including electric, hybrid, and plug-in, rose 26.6% in August to 69,000 units. EV exports in particular jumped 78.4% thanks to the launch of new and relatively inexpensive models.

Sales in South Korea itself also recovered, standing at about 139,000 vehicles in August, an 8.3% increase that completed seven consecutive months of growth. Environmentally friendly models accounted for more than half of all vehicles sold in South Korea in August, with a 36.1% increase in August.

Israel

The Ministry of Transportation is preparing to implement cybersecurity regulations in the automotive sector

During September, the Ministry of Transportation published a draft to update the "Automotive Services Law" aimed at applying various regulations for cybersecurity in the automotive sector. According to the regulations, the Minister of Transportation will be authorized to set binding cybersecurity provisions for importers, leasing companies, and service systems in the automotive industry. Among other things, entities engaged in the field will be required to employ a cybersecurity expert as an employee of the company or through outsourcing. The regulations will apply by 2026.

The full regulations have not yet been published, but they are expected to include, among other things, the ability of importers to monitor and identify cyber attacks on their vehicles and try to prevent them in real time using appropriate tools. In addition, importers will have to conduct a risk assessment of various models according to their suppliers abroad, examine and report on remote updates (OTA) performed on the vehicles, inform customers about cyber threats, conduct training for personnel in companies on the subject, and more.

It should be noted that the move began to be formulated several years ago by an inter-ministerial committee led by the Ministry of Transportation, but it has gained momentum in the past year due to the rapid increase in the number of smart and network-connected vehicles that are driving on Israeli roads, most of which are made in China. According to estimates, over 200,000 such vehicles are already registered for traffic in Israel.