"The IDB unit, which is negotiating for the franchise to import BYD electrical cars to Israel, could face stiff competition in the Israeli automobile sector," a senior market source told "Globes" yesterday. He was commenting in response to the report in "Globes" that IDB Holding Corp. Ltd. (TASE:IDBH) is in talks with Chinese car maker BYD for a franchise to import electric cars to Israel.
The source added that Hamizrach, the Israeli importer of Land Rover, already holds a BYD franchise, signed by the company's representative in Israel. The source believes that Hamizrach has been promoting BYD cars in Israel since last year, although it has not singled out the Chinese maker's electric models.
The source also believes a third player, Mayer Cars and Trucks Ltd., the importer of Volvo and Honda, is also angling for a franchise from BYD and is still very much in the picture. "Globes" understands that senior Mayer managers recently held talks with representatives from BYD. Jacob Shachar confirmed to "Globes" that a meeting had been held between the two sides.
Automobile sector sources believe that IDB is apparently seeking to expand a BYD franchise to other markets in Eastern Europe, one of which could be Croatia. BYD reportedly views Israel as a "test site" for its electric cars. The company is therefore likely to market both these and its hybrid models separately and award individual franchises for each.
Published by Globes [online], Israel business news - www.globes-online.com - on August 26, 2008
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