Monthly Review June 2024

Preface – Economic Climate

The Israeli economy continues to face significant challenges due to the complex security situation and global market conditions.

Economic indicators reflect mixed trends: on the one hand, low unemployment and relatively moderate inflation indicate economic resilience; on the other, the high deficit and rising debt-to-GDP ratio underscore the need for cautious fiscal management. The forecast for moderate growth in 2024 emphasizes the importance of growth-supporting policy measures.

The Israeli economy is an advanced economy that participates in the OECD organization. Israel's GDP per capita is $52,856. Israel's growth rate in 2023 was 2%, while the current forecast for 2024 is 1.5% and 4.2% for 2025.

Israel maintains a 7.6% deficit of the GDP from July 2023 to June 2024.The debt-to-GDP ratio increased to 62.1% in 2023, and the unemployment rate in June 2024 was 3.0%. As of June 2024, the annual inflation growth rate is 2.9%. In June 2024, the short-term interest rate was 4.5%, while the long-term interest rate stood at 2.04% (May 2024).

Statistical Profile

Society

Population (June 2024): 9.907 Million

Economy

GDP per capita (June 2024): $ 52,856 

Inflation (June 2024) (Annual Growth Rate): 2.9% 

Current Account Balance (April 2024): 5.6% of GDP

Trade in Goods and Services (June 2024): $11.435 billion

Finance

US Dollar Exchange rate (June 2024, Avg.): NIS 3.731

Euro Exchange rate (June 2024, Avg.): NIS 4.016

Long-term interest rates (May 2024): 2.04% Per Annum

Short-term interest rates (June 2024): 4.5% Per Annum

Government

Debt to GDP ratio (2023): 62.1%

Deficit to GDP (July 2023 - June 2024): 7.2% 

Motorization

Level of Motorization (2023): 417 Vehicles/1,000 Residence

Innovation and Technology

Gross Domestic Spending on R&D (2021): 5.557% of GDP

Environment

CO2 Emissions (2022): 6.2 Tonnes Per Capita

Jobs

Employment Rate (June 2024): 62.9% of the Working Age Population

Official Unemployment Rate (June 2024): 3% of the Labour Force

New Cars and CV Registrations

 New Passenger Car Registration: Jan-June 2024

Passenger car registration:  Decrease of 11% compared with Jan-June 2023.

In June 2024, the Israeli passenger car market registered 25,942 new cars – an increase of 4.9% compared with June 2023. Since the beginning of the year, 155,145 new cars were registered, a decrease of 11% compared with last year. Since January, 39,236 BEVs were registered and 4,895 PHEVs, a total of 44,134 cars with chargeable electric drive representing 28.4% of all registrations. The market share of pure EVs in 2024 is currently 25.3%.

New Passenger Cars Registration According to Brands: Jan-June 2024

New CV above 3.5-ton Registration: Jan-June 2024

Commercial Vehicles above 3.5-ton registration: -4.8% compared with June 2023.

In June 2024, the Israeli market for CVs above 3.5 tons registered a decrease of 4.8% in deliveries with 1,300 new registrations, compared with 1,365 units in June 2023. Since the beginning of the year, 7,544 units were delivered, a decrease of 9.7% compared with last year. 

New CV above 3.5-ton Registration According to Brands: Jan-June 2024

New Bus Registration According to Brands: Jan-June 2024

Israel's Auto and Auto-Tech industry

AT&T Invests in Israeli Precision Navigation Startup Tupaia

Tupaia Positioning Solutions, an Israeli startup that provides high-precision positioning cloud service for GNSS (Global Navigation Satellite System), received an investment from American tech and communications giant AT&T via its investment fund AT&T Ventures.  The investment, whose scope was not disclosed, was done following two years of testing in which Tupaia demonstrated its ability to provide centimeter-precision navigation. Tupaia, which was founded in 2020, aims to solve the issue of several meters' inaccuracy in GPS systems. The company’s algorithms combine data from the user's mobile GNSS with fixed locations of satellite navigation receivers. GNSS integrates information from several satellite networks, including the American GPS and European Galileo.

StoreDot and Polestar Demonstrate World’s First Electric Vehicle 10-Minute Charge with SI-Dominant Cells

StoreDot, a pioneer and world leader in extreme fast charging (XFC) battery technology for electric vehicles, and Polestar, the Swedish electric performance car brand, revealed a groundbreaking milestone by demonstrating pioneering battery technology that charges an electric vehicle in just 10 minutes. The companies successfully charged a 77kWh battery pack powered by StoreDot’s extremely fast charging high energy (300Wh/kg) silicon-dominant battery cells, installed in a fully driveable verification Polestar 5 prototype, from 10% to 80% in under 10 minutes. The vehicle saw a consistent charge rate of over 310kW for the entire test procedure and a peak of more than 370kW. All cell parameters, including temperature, voltage, and charged capacity, were monitored throughout, with the battery pack never exceeding the target operating temperature set by the engineers of both teams. The demo showcased StoreDot’s ‘drop-in’ ability to be integrated into an existing car model and paved the way to extremely fast charging using the available charging infrastructure.

Arbe Robotics Secures Deal with Leading Automotive OEM

Arbe Robotics Ltd. known for its perception radar solutions, confirmed that a top ten global automotive OEM has chosen its radar chipset for their next-generation imaging radar. This development is intended for serial production and marks a significant step for Arbe in the automotive radar market. The unnamed OEM will start preparations for serial production immediately. Arbe's technology was selected after rigorous competitive technical evaluations and field testing, signaling confidence in the chipset's capabilities.

I-Via Launches a CAO Certification Course in Collaboration with Ono Academic College

The Israeli Vehicle Importers Association (I-Via) announced the successful launch of the Chief Automotive Officer (CAO) Certification Course. This one-of-a-kind course commenced on June 19, 2024, marking a significant milestone as the first program of its kind globally dedicated to developing senior executives in the automotive industry. The initiative, jointly presented by the Israel Vehicle Importers Association and the Unit for Certificate and Continuing Studies at Ono Academic College, offers a unique educational experience tailored to the specific needs of top-level management in the automotive sector. The course has six sessions spread over six weeks and is taught by a distinguished faculty of senior figures from the Israeli automotive sector. These experts bring extensive experience and insights, ensuring that participants gain a comprehensive understanding of the automotive sector's ecosystem with a focus on strategic management, regulatory frameworks, and market dynamics. This course is a significant step towards nurturing leadership that can navigate and influence the rapidly evolving Israeli car market.

Nayax Launches EV CloudPay - Payment Solution for EV Chargers

Nayax Ltd, a leading global commerce enablement, payments, and loyalty platform designed to help merchants scale their business, announced the launch of Nayax EV CloudPay, a cloud-based payments solution to help consumers facilitate payments at electric vehicle (EV) charging stations. EV CloudPay allows drivers to pay for their charge with a credit card, debit card, or mobile wallet via a physical payment processing kiosk that is located on-site at the charging station. Individual payment processing devices do not need to be attached to each charger. The kiosk will be able to accept more than 80 forms of cashless and digital payment methods. Many drivers currently pay for their charge by downloading multiple mobile apps, a time-consuming process. Since the kiosk is cloud-based, a single kiosk can facilitate the payments for multiple chargers. This creates a seamless experience for charging station operators and customers. EV CloudPay is simplifying the EV charging payment experience at a time when EV charging stations are a pivotal component of the global transition to EVs. Strong EV charging infrastructure, which includes a faster and more convenient way for drivers to pay for their charge, is critical for increasing adoption and consumer use of EVs. The EV cloud payment solution is being released by Nayax Energy, the company’s energy and mobility division, which also offers payment devices, software, and EV charging solutions for street parking, parking garages, gas stations, hotels, shopping centers, apartment buildings, and other sites.