New Law Increases Competition in Automobile Imports

Jerusalem, 13 August, 2025 (TPS-IL) — The Knesset approved today (Wednesday) in second and third readings (this means the law passed) an amendment to the Law on Licensing Services and Professions in the Automotive Industry, which significantly increases the scope 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 was set as a temporary order for a period of four years starting on August 19, and is expected to encourage the import of vehicles at a price accessible to the public.

In addition, the amendment now adds motorcycles and ATVs to the list of vehicles that can enter the country through small or indirect imports, so that the direct importer’s obligation to provide service, treatment, and warranty fulfillment will now also include them, and not just passenger and commercial vehicles as was the case until now.

A vehicle owner, even if he did not purchase it from the direct importer, will be able to receive all maintenance services, repairs, and treatment of serial safety defects (“recalls”), as required by law.

The amendment to the law is intended to expand the supply and variety in the market, ensure service and transparency, and encourage competition in both vehicle prices and the level of service to the consumer. The minister of Transportation may, with the approval of the knesset Economics Committee, extend the validity of the provisions for up to four years.