Israel Germany | Business Guide | 2026

Driving Israeli Mobility Tech to German Success I srael's technological excellence shines brightest in the automotive sector: of the 7 , 000 active startups operating in Israel, approximately 700 companies comprise a dedicated auto-tech ecosystem. It comes as no surprisethen, that leading global corporations are drawn to seek innovation in the Start Up Nation. This was precisely the case with Volkswagen Group Konnect and its intensive operations in Tel Aviv. Konnect, the Volkswagen Group Innovation Hub in Israel, was established in 2018 . Its mission is to scout and evaluate Israeli automotive and mobility technologies with the goal of integrating them into the Group's vehicles and manufacturing facilities. "We're here to identify and promote promising new technologies across various auto-tech fields, based on the specific needs and use cases of the Group's 10 brands, includingAudi, Škoda, Seat, and others", explains Hemdat Sagi, Konnect's Managing Director. "These needs include mobility, autonomous driving, connectivity, AI, sensors, and even sustainability and climate solutions. Given Israel's rich background in software, computer vision, AI and semiconductor development, the local ecosystem can address these needs in numerous ways." Sagi is also a co-founder of Konnect, which operates as a nine-person team. In addition to her 15 years of experience in senior strategic and biz-dev roles, she served from 2012 to 2016 as Commercial Attaché and Head of the Economic Department at the Israeli Embassy in Berlin. Konnect was established based on a recognized need – to identify and integrate innovations that were created externally. "This stemmed from the understanding that not everything can be developed in-house," explains Sagi. "Indeed, after we launched our hub, other automotive companies were pursuing the same approach." Konnect, Volkswagen Group Innovation Hub TLV, cultivates Israeli start up technologies and opens doors for them How quickly can you react to changes in the Auto-tech market? Sagi: "We operate as an independent Israeli organization, hencewe can act very quickly. This ismost evident in the initial phase: instead of a long and slow corporate processes, we evaluate a startup technology much faster; our technology validation can be completed within three months. We use our own budget resources to fund projects rather than wait for long corporate internal approvals. We've learned how to be agile, proactive, and fast, just like a startup." Konnect functions as a testing and validation hub for mobility technologies. The team executes dozens of projects and proofs of concept per year with Israeli and global startups on their path to global, long-term collaborations (see box). "It's a long-term journey – and we initiate and steer the projects while keeping them compatible with industry standards," explains Sagi. Do you take equity in the companies you choose to work with? "We do not. We are not an investor but a potential customer. It’s more challenging for the startups but increases their validation and ability to raise funds, and many startups actively seek to partner with us.“ What do you look for in a startup? "We search for genuinemarket need: does our Group actually need this solution? If there's isn’t, we help to re-adjust it or skip it altogether. We have the Konnect Innocar, an Audi Q 4 e-tron testing vehicle, which we use to test the startup applications in the car. "Seed stage startups are too early for us; we require an MVP – a minimal viable product , that can be tested in our vehicle immediately. We're looking for Technology Readiness Level (TRL) 4 or 5 . However, we're still eager tomeet younger startups as well." AlongsideKonnect's activities, VolkswagenGroup established Hemdat Sagi Photo: Elad Malka Israel-Germany > Business Guide > Celebrating 60 years of diplomatic relations > 2026 12 > General Information > Innovation Hub