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The Israeli car market in 2024 showcased a preference for East Asian brands. Toyota was the market leader at 13 percent of new passenger vehicle registration, followed by Hyundai and Kia, which captured 10.8 percent and 9.7 percent, respectively. Their dominance reflects a long-standing consumer preference for Japanese and South Korean models, which have topped sales charts for years. 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 2024, the local EV fleet reached new heights, growing by 70 percent year-on-year, to over 160,000 cars. Chinese manufacturers are leading this transition, with BYD emerging as the most popular EV brand in the country. That year, over 53,000 new Chinese-made electric cars were registered, accounting for 77 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. By 2024, the number of passenger cars on Israeli roads reached almost 3.7 million. Factors such as insufficient public transit infrastructure and its restrictions on the Sabbath, encourage many in the Jewish state to rely on private means of transportation. Current passenger car ownership rates stand at 366 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.