Chinese Cars Bolster Presence in Middle East Markets Through Localization and Industrial Cooperation

From Cairo to Riyadh, Istanbul, and Tel Aviv, Chinese cars are rapidly traversing the Middle East markets in a qualitative shift that moves beyond mere trade figures to an industrial revolution based on technology, integration, and shared development, drawing a new picture of South-South cooperation.

1. New Strategy: Localization and Integration

• The Shift: Transitioning from an "export-oriented approach to local operation" and "deep integration" with local industries.

• Localization Models:

  • Egypt: Establishment of Completely Knocked Down (CKD) assembly plants like Jetour, where 40% of components are locally manufactured.

  • Turkey: A massive $10 billion investment by BYD to create the largest foreign automotive project in decades, expected to generate 5,000 jobs.

  • Qatar: Yutong offers mobility solutions and plans to establish an assembly plant, shifting from "selling the product" to "technology transfer."

2. Quality and Technological Edge

• Market Recognition: Chinese cars are no longer relying solely on price but are now attracting consumers with "quality for value," reliability, and customized design.

• Data: Chinese brands accounted for 28% of car imports in Israel (H1 2025), with analysts expecting the share to exceed 40%.

• Advantages: Clear leadership in electrification, smart cockpits, autonomous driving, and richness of features compared to similar European cars, often at more accessible prices.

3. Alignment with National Visions

• Synergy: The Chinese automotive strategy (Belt and Road Initiative, New Energy Vehicles strategy) aligns strongly with regional development visions, such as Saudi Vision 2030 and the UAE's national electric vehicle policy.

• Regional Goal: Gulf countries are now seeking technology acquisition, industrial development, and green transition through cooperation, rather than simple commodity transactions.