Automotive industry in Israel - statistics & facts
Israel's automotive market is experiencing steady growth, particularly in passenger cars and mobility service segments. In 2023, the total number of vehicles in the country reached over 4.1 million, reflecting a compound annual growth rate (CAGR) of 4.12 percent since 2013. Evidently, the local motorization rate has consistently grown for over a decade, with passenger cars ownership rates increasing faster than commercial vehicles. Nonetheless, the rapid adoption of electrified vehicles among Israeli drivers has become the most salient shift the sector has experienced in years. The question remains whether demand for EVs will persist, and what new car brands will come on top of this trend. Initial data hints that the sector may be facing a dramatic change.
Private car ownership dominates the market
Privately owned passenger cars make up the vast majority of Israel's automobile fleet. In 2024, over 256,000 units were expected to be sold, raking in billion-dollar revenues. Of these, almost 37 percent of originated from well established manufacturers in Japan and South Korea. The popularity of personal-use vehicles is largely attributed to insufficient public transportation infrastructure and is further exacerbated by religiously motivated regulations which limit public transit services on weekends. As a consequence, approximately 70 percent of households report owning at least one car.
Electric vehicles gain traction
The electric vehicle (EV) sector in Israel is experienced exceptional growth in recent years. The number of EVs in the country more than doubled in 2023, reaching nearly 96,000 cars. Chinese manufacturers are leading this transition, accounting for over 60 percent of new EV registrations. BYD has emerged as the most popular EV brand in the country. This surge in EV adoption is part of a broader trend, with increasing numbers of cleaner mobility solutions being introduced. While the local EV transition began rapidly, industry watchers have said it may moderate in the near future. A gradual reduction of tax-breaks on electrified cars is already increasing prices. Furthermore, the introduction of new tariffs on Chinese cars by the EU may also have knock-on effects in neighboring Israel.
Private car ownership dominates the market
Privately owned passenger cars make up the vast majority of Israel's automobile fleet. In 2024, over 256,000 units were expected to be sold, raking in billion-dollar revenues. Of these, almost 37 percent of originated from well established manufacturers in Japan and South Korea. The popularity of personal-use vehicles is largely attributed to insufficient public transportation infrastructure and is further exacerbated by religiously motivated regulations which limit public transit services on weekends. As a consequence, approximately 70 percent of households report owning at least one car.
Electric vehicles gain traction
The electric vehicle (EV) sector in Israel is experienced exceptional growth in recent years. The number of EVs in the country more than doubled in 2023, reaching nearly 96,000 cars. Chinese manufacturers are leading this transition, accounting for over 60 percent of new EV registrations. BYD has emerged as the most popular EV brand in the country. This surge in EV adoption is part of a broader trend, with increasing numbers of cleaner mobility solutions being introduced. While the local EV transition began rapidly, industry watchers have said it may moderate in the near future. A gradual reduction of tax-breaks on electrified cars is already increasing prices. Furthermore, the introduction of new tariffs on Chinese cars by the EU may also have knock-on effects in neighboring Israel.
