Number of private cars in Israel 2013-2023

Israel's passenger car market continues to grow, with the number of vehicles reaching nearly 3.6 million in 2023. This marks a steady increase over the past decade, reflecting the country's reliance on private transportation. The persistent growth in private forms of transportation is a result of lacking in public transit infrastructure, as well as religiously informed policies restricting public transportation on weekends.

Market dynamics and future outlook

The Israeli automotive market is primarily import-driven, with Japanese and South Korean brands like Hyundai, Kia, and Toyota leading in new car registrations. However, the rise of electric vehicles (EV) is reshaping the competitive landscape, with Chinese manufacturers making significant inroads. Despite the growing number of cars, there is still room for market expansion, as Israel's car ownership rate of 361 vehicles per 1,000 inhabitants remains below the OECD average.

Shifting consumer preferences

While traditional gasoline-powered cars still dominate Israeli roads, electric vehicles (EV) are experiencing rapid growth. By the end of 2023, the country's EV fleet more than doubled in size, reaching almost 96,000 cars. Electrification is also associated with usage. Interestingly, EVs in Israel are driven more than their conventional counterparts, averaging 58 kilometers per day compared to 41 kilometers for other passenger cars.