Distribution of new private cars in Israel 2023, by brand

The Israeli automotive market in 2023 showcased a clear preference for Japanese and South Korean brands. Hyundai was the market leader at 15.9 percent of new passenger vehicle registration, followed by Kia and Toyota, which captured 12.4 percent and 11.5 percent respectively. The dominance of these manufacturers reflects a long-standing preference among Israeli car buyers, where East Asian vehicles have consistently held top positions. Nevertheless, the growing popularity of electric vehicles is beginning to challenge the supremacy of traditional exporting countries.

Will the Chinese EV revolution persist?

While gasoline-powered cars still dominate Israeli roads, electric vehicles (EV) are experiencing rapid growth. By the end of 2023, the local EV fleet reached new heights, more than doubling its size in a year, to nearly 96,000 cars. Chinese manufacturers are leading this transition, with BYD emerging as the most popular EV brand in the country. That year, almost 32,000 new Chinese-made electric cars were registered, accounting for over 60 percent of all new EVs. However, industry watchers have noted that a new tariff regime introduced by the European Union on Chinese cars, may also negatively impact the neighboring Israeli market in coming years.

Private car ownership is on the rise

The overall number of passenger cars in Israel has steadily increased, reaching over 3.4 million in 2022. Factors such as insufficient public transit infrastructure and further restrictions on its running on the Sabbath, encourage many in the Jewish state to rely on private means transportation. Current passenger car ownership rates stand at 361 vehicles per 1,000 inhabitants, below the OECD average. This suggests the market still has room to grow. However, increasing car ownership will present a challenge for the small country, in terms of growing road congestion.