Electric vehicles in Israel - statistics & facts
While the automotive sector in Israel experienced steady growth over recent years, the explosive popularity of electric vehicles (EV) marked the most salient trend in the industry. As of 2023, the total number of EVs in the country reached nearly 96,000, increasing from just 2,600 in 2019. This reflected a compound annual growth rate (CAGR) of about 146 percent. The rapid adoption of electric cars was driven by several factors, including the introduction of new Chinese automotive brands as well as a favorable tax regime. Looking ahead, industry watchers have suggested that newly introduced tariffs by the European Union on Chinese automotive imports may have knock-on effects on the supply of EVs to neighboring Israel. Furthermore, the gradual drawing back of tax incentives will increase prices and likely temper demand for new vehicles. Nonetheless, government forecasters projected a complete energy transition of the sector by 2050, estimating 6.4 million EVs on Israeli roads. This study underscores the scale of the electrification revolution expected in the coming years.
Chinese brands dominate the EV market
Chinese automakers have emerged as a dominant force in Israel's EV landscape. In 2023, BYD claimed the top spot as the most popular EV brand among local buyers. Geely and Tesla followed closely, each registering about 7,000 new cars. Despite their incumbent status, Chinese carmakers accounted for almost two-thirds of all EV imports into the country. On the other hand, in the hybrid car segment, traditional brand leaders from Japan and Korea maintain their marketability. Notably, Toyota was the most popular hybrid car manufacturer in 2023, registering nearly 24,000 new hybrid vehicles. But as EV sales accelerated in recent years, it came at the expense of growth in the hybrid vehicle market, which moderated. These local trends highlight the potential of Chinese automakers to disrupt the global auto industry.
Future electricity demand may strain the grid
Looking ahead, as the transportation sector in Israel moves onto electrical power, demand for electricity is projected to increase. By 2050, annual energy requirements for EVs were forecast to reach approximately 21 terawatt hours. For reference, annual electricity production in the country in 2022 was about 76 terawatt hours in total. Much of the new demand on the grid will originate from passenger vehicles, with the most intense period of growth expected in the decade between 2030 and 2040. Interestingly, EV charging infrastructure is mostly expanding into private residences. A recent survey revealed that Israeli EV drivers mostly rely on home ports for charging. Public charging providers, on the other hand, are comparatively expensive and lack sufficient facilities to satisfy consumers. In order to facilitate the electrification of transportation, the need for a robust energy system will become more critical in the coming decades.
Chinese brands dominate the EV market
Chinese automakers have emerged as a dominant force in Israel's EV landscape. In 2023, BYD claimed the top spot as the most popular EV brand among local buyers. Geely and Tesla followed closely, each registering about 7,000 new cars. Despite their incumbent status, Chinese carmakers accounted for almost two-thirds of all EV imports into the country. On the other hand, in the hybrid car segment, traditional brand leaders from Japan and Korea maintain their marketability. Notably, Toyota was the most popular hybrid car manufacturer in 2023, registering nearly 24,000 new hybrid vehicles. But as EV sales accelerated in recent years, it came at the expense of growth in the hybrid vehicle market, which moderated. These local trends highlight the potential of Chinese automakers to disrupt the global auto industry.
Future electricity demand may strain the grid
Looking ahead, as the transportation sector in Israel moves onto electrical power, demand for electricity is projected to increase. By 2050, annual energy requirements for EVs were forecast to reach approximately 21 terawatt hours. For reference, annual electricity production in the country in 2022 was about 76 terawatt hours in total. Much of the new demand on the grid will originate from passenger vehicles, with the most intense period of growth expected in the decade between 2030 and 2040. Interestingly, EV charging infrastructure is mostly expanding into private residences. A recent survey revealed that Israeli EV drivers mostly rely on home ports for charging. Public charging providers, on the other hand, are comparatively expensive and lack sufficient facilities to satisfy consumers. In order to facilitate the electrification of transportation, the need for a robust energy system will become more critical in the coming decades.
