Recent data on vehicle deliveries in Israel for the months of January and February 2024 reveals a notable trend toward electric vehicles (EVs), particularly those manufactured in China. Despite an overall decline in vehicle deliveries by approximately 16.9% compared to the same period last year, the demand for electric vehicles has surged, with a remarkable 40% increase, totalling around 15,289 vehicles delivered during the first two months of the year.

The data further highlights a significant shift in market preferences, as the market share of all electric vehicles among new vehicle deliveries increased to about 24%, a substantial rise from last year’s 14.3% during the same period. Chinese electric vehicle brands have notably dominated this surge, claiming seven out of the top ten spots in the January-February segment. Notably, newcomer ZEEKR, entering the market at the beginning of 2024, swiftly secured the ninth position, even surpassing Tesla, which landed in tenth place.

China Emerges as Primary Importer

In a notable development, China has emerged as the leading source of imports for the Israeli car market, surpassing South Korea, which held the top position in the past. The data indicates that during the first two months of 2024, 14,311 new vehicles manufactured in China, encompassing both electric and gasoline-powered engines, were delivered in Israel, marking a 10% increase compared to the same period last year.

Chinese-made vehicles, including both gasoline and electric engines, accounted for approximately 19% of all new vehicle sales during this period, a significant uptick from the 16% recorded last year. This surge is partly attributed to the accumulation of large stocks of electric vehicles from China, as importers prepared for the increase in the purchase tax on electric vehicles, rising from 20% to 35% in January 2024. In total, Chinese brands secured over 70% of the deliveries of electric vehicles during this period.

Leasing Companies Drive Sales

The surge in electric vehicle purchases was particularly pronounced among leasing companies, which procured substantial quantities of electric vehicles at prices reflecting the previous purchase tax rates. Both private customers and leasing companies anticipate an increase in the gross prices of used electric vehicles at the beginning of the next year, following another planned hike in the purchase tax on electric vehicles. Presently, Israel hosts sales of 22 car brands manufactured in China.

Overall, a total of 63,490 vehicles were delivered in the first two months of 2024, marking the lowest figure for this period in about a decade. This decline is attributed, in part, to the impact of the war and the notable slowdown in the economy.

Main image credit: www.zeekr.eu