The Israeli car market continues to show weakness. Data from the Licensing Ministry indicate that in February 2025, only 24,611 new vehicles were delivered, down 5.9% from February 2024, when the war was raging. This is the lowest figure for February since 2020.
Since the beginning of 2025, 71,224 vehicles have been delivered in Israel, an increase of 1.2% from the same period last year due to strong deliveries in January.
Deliveries of gasoline, hybrid and plug-in vehicles were led by Hyundai with 9,251 deliveries since the beginning of the year thanks to strong demand for the KONA and Elantra models. Toyota is in second place with 7,736 deliveries, a sharp increase of 38.4% compared with the same period last year. Kia is in third place with 6,489 deliveries, down 13.1%, due, among other things, to disruptions in the supply of key models. Skoda is in fourth place with 6,834 deliveries, up 72%; while the top five is rounded out by Chinese carmaker Chery, with 3,975 deliveries, up 140%.
The electric vehicle segment showed weakness in the first two months of the year with a decrease of 28% in deliveries compared with the same period last year. Since the beginning of the year, about 11,000 deliveries have been recorded in the segment, and their market share has fallen from 23% to 15%. The main decrease is attributed to the entry of popular plug-in models, which compete with electric ones, and the sharp rise in registration fees for electric vehicles at the start of the year.
Chinese-made vehicles continue to strengthen their hold on the market. In the first two months of the year, 18,092 Chinese-made vehicles were delivered to Israel, up 26% from the same period last year and a share of about 25% of total sales.
Marketing battles
Due to market weakness and fierce competition, especially among Chinese brands, the marketing battles between manufacturers continue, which are reflected in price cuts and the launch of new models at discounted prices. Samelet today cut the price of the Chinese electric vehicle LeapMotor T03, the latest version of which was only launched at the end of last year, by about NIS 20,000 to NIS 89,900, and it is currently the cheapest electric car in Israel.
Meanwhile, the Freesbe (Carasso) has launched the Tiggo 7 crossover with a plug-in drive, designed to compete directly with sister company Chery’s Jaeco 7. The vehicle is equipped with a drive system that combines a 1.5-liter turbo gasoline engine, an electric motor and an 18.3 kWh battery. It has an electric-only range of up to 90 kilometers and comprehensive standard equipment. Its price starts at NIS 180,000, NIS 9,000 cheaper than its launch price in Israel.
Published by Globes, Israel business news – en.globes.co.il – on March 3, 2025.
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