The move to exclude Chinese-made vehicles from government agencies and defense companies, out of data security considerations, continues. Chinese vehicles have been banned from participation in leasing and procurement tenders held by the IDF, Israel Aerospace Industries, Rafael, and other entities, and now Elbit Systems has instituted a similar ban. Until now, Elbit Systems, one of the largest defense companies in Israel, allowed employees entitled to a company car to choose from a list that included several models manufactured in China.

In the past few days, however, employees who chose Chinese cars have received notification that that option has been rescinded retroactively, and they have been requested to choose other models from the list. Hundreds of Elbit Systems employees in the current round of vehicle procurement are believed to be involved, and thousands will be affected in the future. The main gainers will be popular competing models produced in South Korea, Japan, and Europe.

Elbit Systems’ vehicle fleet numbers about 4,500, mostly leased, and it is one of the largest in the private sector. The upshot is that the fleet will contain far fewer plug-in electric vehicles, as the approved manufacturers have almost no offering of such vehicles in the relevant price range, of NIS 160,000-250,000. No response was forthcoming from Elbit to the report.

Sources in the industry say that the sudden announcement by the government procurement administration in the Ministry of Finance at the beginning of the month of the cancellation of planned procurement tenders for electric vehicles for government employees was actually intended to block the purchase of Chinese vehicles.

"The decision was made under pressure from the US administration and because of a tightening of cybersecurity policy in the wake of the rounds of hostilities with Iran," the sources said. The Ministry of Finance chose not to "open a front" publicly against the Chinese government, and instead decided to cancel the tenders entirely until further notice. The Ministry of Finance said in response, "In the light of changes in the vehicle market affecting the electric vehicle segment, it was decided that further staff work was required in order to improve the pricing documents."

The US and its allies have been introducing regulatory measures to block the spread of smart devices connected to the Internet produced in China, vehicles among them. Within the past few days, the US administration has added two Chinese vehicle manufacturers, BYD and Nio, to a list of firms with alleged ties to the Chinese military. The companies concerned deny the allegation, and say that they will turn to the courts.

Published by Globes, Israel business news - en.globes.co.il - on June 11, 2026.

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