Parallel Import and The Grey Market - Automobiles Industry
Elli Kraizberg
Organization:
The Car Import Market in Israel
Industry:
Transportation
Areas:
Strategic Management, Industry, Marketing & Sales
Description:
A window of opportunity has been opened in the car import market in Israel (4.4 billion US-dollars market) since 2016. New legislation, backed by a Supreme Court decision, allowing parallel imports threatens to break the cartelistic nature of this market that has previously prevailed. However, actions by the Ministry of Finance due to potential loss of tax revenues put a major obstacle for potential entrants to penetrate this market. As a result of the above, the market is in a limbo, and as of early 2019, no major change in the structure of the market has been detected. Is the window of opportunity lost forever?