BYD Economic Audit - Domain Audit Report
Supply Chain & Sourcing Relationships
Direct Supplier Relationships
- BYD operates a fully verticalized supply chain producing batteries, semiconductors, motors, and electronics in-house 123. No public evidence identified of BYD maintaining contractual purchasing relationships with Israeli agricultural aggregators or exporters (Mehadrin, Hadiklaim, Galilee Export, Agrexco successors, or named successors) 1. No Israeli agricultural sourcing was identified in any corporate disclosure, NGO investigation, or trade database 123.
Importer of Record Structure
- BYD utilizes Shlomo Motors Ltd. (reg. 511142168; private Israeli Ltd.) as its exclusive national distributor and importer of record for passenger NEVs in Israel 456.
- Shlomo Motors is a 100% subsidiary of S. Shlomo Holdings Ltd. (TASE:SHLD), a publicly listed Israeli holding company 789. The corporate chain runs from Shmeltzer Holdings → S. Shlomo Holdings (public, TASE:SHLD) → Shlomo Motors (100%) 78.
- BYD Europe B.V. (Netherlands; KVK 24288673, founded 1998, Schiedam) is the contracting regional entity managing the distribution agreement with Shlomo Motors 410. BYD does not hold a registered Israeli subsidiary, branch, or establishment 410.
- BYD operates a separate BYD.ps entity for the Palestinian market with showroom at Dallas Center, Al-Balu’, Al-Bireh (Area A, West Bank/PA control) and service center at Al-Burj Building, Industrial Zone, Betunia, Ramallah 1112. This entity is operationally distinct from BYD’s Israel operations 1112.
Seasonal Sourcing Patterns
- No public evidence identified of BYD sourcing Israeli-origin products on a seasonal or recurring basis 12. BYD’s supply chain is vertically integrated and does not depend on Israeli-origin agricultural or component inputs 12.
Third-Party & Indirect Sourcing
- No public evidence identified of Israeli-origin products reaching BYD through third-party distributors, resellers, or white-label arrangements 13.
Product Origin, Labeling & Regulatory Compliance
Settlement-Origin Products
- BYD is not named in any public NGO investigation, regulatory citation, or civil-society report as importing or distributing settlement-origin products 123. BYD manufactures and imports complete vehicles (CBU); it does not produce or source components from occupied territories 123.
Labeling Compliance
- BYD vehicles sold in Israel are labeled as Chinese origin (CBU imports from China) 1314. No government advisory or enforcement action regarding country-of-origin labeling for settlement-produced goods has been identified in relation to BYD 1314.
Corporate Labeling Policy
- BYD’s published Human Rights Policy Statement (July 2024) references UN UDHR, UNGPs, and OECD Guidelines and covers forced labor, child labor, anti-discrimination, privacy, and health/safety 15. It does not reference occupied territories, Israeli settlements, or the OPT 15.
- No separate corporate policy on sourcing or labeling of goods from occupied or contested territories has been identified 1516.
Investment, Capital & Financial Exposure
Foreign Direct Investment
- BYD holds no real estate, data center, logistics hub, or factory in Israel or occupied territories 410. BYD’s Israel market presence is structured entirely through an independent Israeli importer (Shlomo Motors) 410.
- BYD vehicles have been procured by Israeli government-linked public transport operators 1718. Egged (Israel’s largest bus operator) awarded BYD a tender for 100 × 12m electric buses (November 2021), supported by Israel’s Public Transport Authority and Ministry for Environmental Protection 1718. Government co-investment for Haifa-area BYD e-bus fleet was cited at 400 million ILS (€93.6 million) 19.
- BYD won the majority share of Israel’s largest-ever electric bus tender (100 of 200 total buses in the tender) 1718. This represents a government patronage relationship, not a direct BYD investment in Israeli infrastructure 1718.
- BYD made no direct capital investment into occupied territories; no evidence of BYD-owned or BYD-leased property in settlements, East Jerusalem, or Golan Heights 1.
R&D & Innovation Centres
- No public evidence identified of BYD operating R&D facilities, technology partnerships, innovation labs, or accelerator programmes in Israel 20. BYD’s documented R&D is limited to in-house facilities in China, Hungary, and European factories 20.
- No BYD-sponsored research relationships with Israeli universities (Technion, Hebrew University, Tel Aviv University, Ariel University, etc.) have been identified 12.
Parent & Beneficial Ownership Flows
- BYD’s controlling founder is Wang Chuanfu (Chairman and CEO) 21. No public evidence identified of Wang Chuanfu holding personal investments, board positions, or family-office vehicles in Israeli companies 21. Wang Chuanfu visited Israel in 2023 (confirmed by Globes); this was a corporate-oversight visit, not an investment act 21.
- Berkshire Hathaway (Warren Buffett) held approximately 8% of BYD from 2008 but fully divested by Q1 2025 2223.
- BYD’s current major shareholders post-Berkshire include Ultron Glory, BlackRock, and Vanguard 24. No public evidence identified of these entities holding direct investments in Israeli settlement-active companies as part of a BYD-related vehicle 243.
- BlackRock and Vanguard are documented major investors in NBIM-excluded Israeli companies (Israeli banks, Bezeq, Elbit Systems), but these are not direct BYD shareholders in the sense of BYD’s own investment decisions 24.
Portfolio & Fund Exposure
- BYD does not hold publicly disclosed portfolio investments in Israeli-domiciled companies, Israeli sovereign bonds, or Israel-focused investment funds 17. BYD’s cash reserves and investment portfolio are held primarily in China and HK/China-denominated instruments per annual report disclosures 17.
- BYD is not listed on NBIM’s exclusion or observation list 24. The full alphabetical exclusion list (158+ companies) was reviewed; BYD is absent 24.
- Norway excluded six Israeli companies August 25, 2025 (five Israeli banks + Caterpillar Inc.) for conduct-based criteria related to the Israel-conflict context 24. BYD was not among them 24.
Operational Presence & Market Activity
Physical Footprint
- BYD operates nine authorized dealer/showroom locations across nine Israeli cities within Israel’s 1948-boundary territory: Petach Tikva, Haifa, Jerusalem (HaUman St 8, postal code 9342104 - within recognized Jerusalem municipal boundary, approximately 4–5 km west of the 1967 armistice line), Be’er Sheva, Bnei Brak (Champion Tower flagship showroom, 800 sqm, completed 2024, designed by A.R. Grinberg Architects), Rishon LeZion, Tel Aviv, Netanya, and Nazareth 13252627.
- No BYD showroom or service center is documented in Ma’ale Adumim, Ariel, East Jerusalem outside the 1948 municipal boundary, Golan Heights, or other West Bank settlements 1325.
- BYD operates no BYD-owned offices, warehouses, or distribution centers in Israel 410. Operations are entirely through Shlomo Motors’ infrastructure 410.
- BYD Europe B.V. (Netherlands) is the regional subsidiary managing the Israeli market; no Israel-registered branch identified 1020.
Employment & Tax Contribution
- Shlomo Motors’ workforce is not publicly disclosed by headcount 56. BYD does not employ personnel directly in Israel 56.
- No evidence identified of BYD holding Israeli tax residency or Preferred Technology Enterprise (PTE) status 56. BYD is not the importer of record in a tax/legal sense; Shlomo Motors holds that role 56.
- BYD vehicles entering Israel are subject to import duties and VAT through Shlomo Motors as importer; specific tax contributions are not publicly disaggregated 4.
Market Positioning
- BYD characterizes Israel as a major strategic export market, not a minor market 21. Israel was described by BYD Chairman Wang Chuanfu (2023) as BYD’s “biggest export market” 21.
- BYD became Israel’s #1 best-selling vehicle brand overall in April 2023 - the first time any EV held that position nationally 2829. BYD Atto 3 was Israel’s best-selling car in 2023–2024, with approximately 25,000 vehicles delivered cumulatively 2829.
- BYD held approximately 26.7% of Israel’s EV market and was the 5th largest vehicle brand overall in Israel by late 2024 30.
- BYD was Israel’s top EV brand 2023–2025 per Israel Vehicle Importers Association data: 12,734 NEV registrations (Jan–Nov 2025: 8,069 BEV + 4,665 PHEV) 14. Israel is BYD’s 6th-largest export destination (H1 2025: 10,597 units) 31.
- BYD launched Atto 2 DM-i PHEV in Israel (November 2025) confirming continued market expansion 32.
Government Contracts & Procurement
- BYD’s documented government-adjacent relationship is the Egged electric bus tender (2021), co-supported by Israel’s Public Transport Authority and Ministry for Environmental Protection 1718.
- No evidence identified of BYD holding direct procurement contracts with IDF, Ministry of Defense, Ministry of Transportation (for passenger vehicles), or Israel Land Authority 12.
- BYD has no documented post-2022 Israeli government fleet contracts for passenger vehicles beyond ongoing Egged bus support 17.
Corporate Structure & Foundational Ties
Founding & Incorporation History
- BYD was founded in Shenzhen, China in 1995; incorporated in China 1. BYD is not an Israeli-origin company and was not acquired from Israeli founders 1.
- BYD has no acquired Israeli subsidiaries or entities 410.
Headquarters & Domicile
- BYD’s legal domicile is Shenzhen, China [^9]20. Regional management for Europe and Israel operates through BYD Europe B.V. (Netherlands) [^9]2010. BYD does not maintain dual or legacy headquarters in Israel [^9]20.
State & Institutional Linkages
- No public evidence identified of Israeli state ownership stakes, government board appointees, government contracts (beyond Egged public-transport context), or designation as critical national infrastructure in Israel 12.
- BYD is not a named party in any Israeli government procurement record as a direct contractor 17.
Structural Governance Features
- No public evidence identified of golden shares, founder shares, charter restrictions, or other governance mechanisms tying BYD’s operations to the Israeli state or its policy objectives 15.
Controlling Principals
- Asi Shmeltzer is Chairman of S. Shlomo Holdings Ltd. (TASE:SHLD) and Shlomo Motors Ltd.; son of founder Shlomo Shmeltzer (d. 2014); board member of Tel Aviv University Board of Trustees and Talma Travel Solutions 73334.
- Affinty / EM Alternatives (investment fund) co-invested in Shlomo Group alongside Asi Shmeltzer, as reported by Eric Lipton (NYT, March 2024) 35. No evidence this fund holds Israeli defense or settlement-active entities 35.
- No public evidence identified of BYD’s controlling principals (Wang Chuanfu, major shareholders) holding personal or family-office investments in Israeli companies distinct from the corporate distribution relationship 21.
Profit Repatriation & Economic Contribution
Revenue Attribution
- BYD does not break out Israel as a reportable segment in its annual filings (HKEX 20-F/annual reports); no standalone Israel revenue is publicly disclosed 1.
- The Israel market is characterized as significant (top export market) in qualitative statements but not quantified in filings 21.
Profit Flows
- As importer of record and 100% owner of the Israeli distribution entity, Shlomo Motors (via S. Shlomo Holdings) retains Israeli market profits from BYD distribution 47. BYD receives export revenue from vehicle shipments to Shlomo Motors; profits are repatriated to China via product pricing 47. The profit flow direction is: consumer payment (ILS) → Shlomo Motors → BYD export revenue (RMB/USD) 47.
Economic Ecosystem Role
- BYD is a dominant actor in Israel’s EV sector (26.7% EV market share, #1 brand overall 2023–2024) 1430. BYD’s Israeli operations are managed exclusively through Shlomo Motors, which is itself a significant employer and tax contributor within the Israeli automotive sector 1430.
- No sector-anchor designation or government characterization of BYD’s role within the Israeli economy has been identified in public filings or government documents 1.
Additional Domain Findings
UN OHCHR Settlement Enterprise Database
- BYD is not listed in the UN OHCHR database of business enterprises involved in settlement activity (158 companies as of A/HRC/60/19, September 2025) 3637.
- Shlomo Motors, S. Shlomo Holdings, and Asi Shmeltzer are not listed in the OHCHR database 3637.
UN A/HRC/59/23 (Albanese, July 2025) §§48–86
- BYD is not named in the relevant paragraphs (§§48–86 covering settlement construction, natural resources/energy, agribusiness, global retail, occupation tourism, finance, charities, academia) 38.
- BYD (automotive/EV manufacturer) falls outside the primary scope of this report’s settlement-activity categories 38.
Civil Society Databases
- BYD is not listed in Who Profits (whoprofits.org) 1, AFSC Investigate (investigate.afsc.org) 2, BankTrack / Don’t Buy Into Occupation (2024, 2025) 3, PAX Companies Arming Israel (June 2024) 39, SOMO Powering Injustice 40, SOMO Fuelling the Flames 41, SOMO Beneath Troubled Waters 42, or HRW/B’Tselem/Al-Haq databases for settlement-linked operations 12404142339.
Post-July 2024 / Post-November 2024 Activity (Constructive Notice)
- No public evidence identified of BYD issuing any corporate statement referencing the ICJ Advisory Opinion (July 19, 2024), ICC arrest warrants (November 2024), or any occupied-territory policy 12.
- BYD continued and expanded Israeli operations post both triggering events 303231: (a) Maccabi Tel Aviv FC sleeve sponsorship announced December 2, 2024 (post-ICJ and post-ICC) 30; (b) Atto 2 DM-i PHEV launched in Israel November 2025 32; (c) continued topping Israeli EV sales through 2025 14; (d) Israel remained a top-10 BYD export destination in H1 2025 31.
- BYD’s only human-rights-related public statement (December 2024) concerned the Brazil Jinjiang Construction labor controversy - not Israel or occupied territories 43.
IDF / Ministry of Defense Relationship
- Israeli Ministry of Defense officially suspended BYD EV supply to IDF officers (July 2025), citing data-collection security concerns 4445.
- IDF is ordering removal of approximately 700 Chinese EVs from officer use (target: Q1 2026) 4546.
- A class-action lawsuit has been filed against BYD and Shlomo Motors at Israel’s Central District Court in Lod, seeking approximately 300 million NIS 47484950. Claim: systematic unauthorized collection and transfer to China of sensitive personal data from approximately 50,000+ vehicle owners (GPS history, biometric info, child identification, voice recordings, driving data) 47484950. IDF/MoD suspension cited as contextual support 50.
- This constitutes a negative operational development - a government prohibition rather than a procurement relationship - but is relevant to BYD’s Israeli market exposure and reputational/legal risk 4546.
Israeli Banking Relationships
- All five major Israeli banks (First International Bank of Israel, Bank Leumi, Mizrahi Tefahot, Bank Hapoalim, FIBI Holdings) are excluded by NBIM (August 2025) for conduct-based criteria related to the Israel-conflict context 24.
- No public evidence identified of which Israeli banks handle Shlomo Motors’ corporate accounts and trade finance for BYD imports 1.
Charitable / CSR Programs in Israel
- No public evidence identified of BYD-funded charitable programs, corporate philanthropy, employee matching gifts, or community donations in Israel 16. BYD’s documented CSR is limited to China, California (Lancaster), and Brazil 16.
BYD’s Own Human Rights Performance
- BYD scored 11/90 on Amnesty International’s EV human rights ranking (October 2024) - the lowest of all 18 automakers assessed 51. Mercedes-Benz scored highest at 51/90 51. BYD’s disclosure on supply chain mapping, smelter/refiner identification, and mine-site identification was rated minimal 51.
- BYD’s Brazil labor controversy is documented: Brazilian Labour Ministry placed BYD on registry of employers using slave-like conditions (April 2026); BYD banned from certain Brazilian bank loans 5253. This is a documented corporate human rights incident, not Israel-specific 5253.
Berkshire Hathaway Divestment
- Berkshire Hathaway completed full divestment of its ~8% BYD stake by Q1 2025, ending a 17-year investment (initial purchase $232M, 2008) 2223.
End Notes
Footnotes
-
https://www.whoprofits.org ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13 ↩14 ↩15 ↩16 ↩17 ↩18 ↩19 ↩20
-
https://investigate.afsc.org ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12
-
https://www.byd.com/eu/news-list/BYD-Appoints-Shlomo-Motors-as-Its-Exclusive-National-Distributor ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12
-
https://cv.byd.com/content/dam/commercial-vehicle-cms/report/Human%20Rights%20Policy%20Statement.pdf ↩ ↩2 ↩3 ↩4
-
https://en.byd.com/news/byd-secures-landmark-electric-bus-order-for-israel ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9
-
https://en.globes.co.il/en/article-chinas-byd-chairman-wang-chuanfu-visits-israel-1001457388 ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7
-
https://www.nbim.no/en/responsible-investment/exclusion-of-companies ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8
-
https://www.maccabi-tlv.co.il/en/2024/12/maccabi-and-the-importer-of-byd-vehicles-to-israel-sign-sponsorship-deal ↩ ↩2 ↩3 ↩4 ↩5
-
https://www.ohchr.org/en/hr-bodies/hrc/special-procedures/sr-human-rights-situation-in-palestine ↩ ↩2
-
https://en.wikipedia.org/wiki/BYD_Brazil_working_conditions_controversy ↩ ↩2