The garage market in Israel is undergoing a transition toward large networks and increased use of foreign workers, amid a preference by owners of existing garages to move into other fields rather than continuing the family business. Competition in the market makes it difficult to raise salaries to a level that would attract more Israeli workers to the sector.
The Shlomo Group, which until now has often relied on maintenance contracts with existing garages, announced the establishment of a network of service centers under its ownership, with nationwide coverage and an investment of approximately NIS 50M. Shlomo is the largest leasing company in Israel, and the move will allow the group to break its dependence on external service providers, streamline service times, and will include signing franchise agreements with importers to serve as their authorized garages. The company has about 75,000 vehicles in its business fleet and 40,000 in private leasing arrangements.
The first center in the network has opened on Timna Street in the Holon industrial zone, with an investment of about NIS 5M and covering 4,000 square meters. The center is already operational and offers professional expertise in electric and hybrid vehicles as well. The garage includes 19 lifts and is capable of servicing 70 vehicles per day. The center will employ dozens of workers from India, alongside Israeli employees.
Additional major service centers are expected to open soon in Beersheba and Netanya. In the future, the garages are expected to also open to private customers outside the group.
Asi Shmeltzer, Chairman of the Shlomo Group: “The establishment of the independent service center network is a strategic step that strengthens our position as the largest automotive group in the economy. We are removing dependence on third-party providers and taking full responsibility for the customer experience end-to-end, with the aim of redefining service quality in the Israeli automotive industry and serving as a significant growth engine for the group in the coming years.”
Eilon Harush, CEO of the Service Division at the Shlomo Group: “The nationwide network under development is designed to fundamentally change the service standard within the Shlomo Group. Independent management of the maintenance system gives us full and uncompromising control over quality, availability, and reliability. We are bringing the group’s power and technology directly to the garage floor, with the goal of significantly reducing waiting times and ensuring every customer a professional, transparent, and accessible service experience at the highest level.”