Monthly Review July 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 current GDP per capita is $52,951. Israel's growth rate in 2023 was 2%, while the current forecast for 2024 is 1.5% and 4.2% for 2025.

Israel maintains an 8.1% deficit of the GDP from August 2023 to July 2024.

The debt-to-GDP ratio increased to 62.1% in 2023, and the unemployment rate in July 2024 decreased to 2.8%. As of July 2024, the annual inflation growth rate is 3.2%. In July 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 (July 2024): $ 52,951 

Inflation (July 2024) (Annual Growth Rate): 3.2% 

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

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

Finance

US Dollar Exchange rate (July 2024, Avg.): NIS 3.673

Euro Exchange rate (July 2024, Avg.): NIS 3.987

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

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

Government

Debt to GDP ratio (2023): 62.1%

Deficit to GDP (August 2023 - July 2024): 8.1% 

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 (July 2024): 62.7% of the Working Age Population

Official Unemployment Rate (July 2024): 2.8% of the Labour Force

New Cars and CV Registrations

 New Passenger Car Registration: Jan-July 2024

Passenger car registration:  Decrease of 8.9% compared with Jan-July 2023.

In July 2024, the Israeli passenger car market registered 25,064 new cars – an increase of 7% compared with July 2023. Since the beginning of the year, 180,209 new cars were registered, a decrease of 8.9% compared with last year. Since January, 44,223 BEVs were registered and 5,306 PHEVs, a total of 49,529 cars with chargeable electric drive representing 27.5% of all registrations. The market share of pure EVs in 2024 is currently 24.5%.

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

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

Commercial Vehicles above 3.5-ton registration: -0.6% compared with July 2023.

In July 2024, the Israeli market for CVs above 3.5 tons registered a decrease of 0.6% in deliveries with 1,282 new registrations, compared with 1,290 units in July 2023. Since the beginning of the year, 8,826 units were delivered, a decrease of 8.5% compared with last year. 

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

New Bus Registration According to Brands: Jan-July 2024

Israel's Auto and Auto-Tech industry

Arbe Collaborates with European Truck Manufacturer to integrate Arbe's Imaging Radar Technology into the Manufacturer's Next-Generation Sensor Suite

Arbe Robotics (ARBE), Ltd., (Nasdaq: ARBE) (TASE: ARBE), a global leader in perception radar solutions, announced a collaboration with a prominent European truck manufacturer to integrate Arbe's automotive grade imaging radar technology into the manufacturer's next-generation sensor suite, as part of the manufacturer's transition to an advanced implementation stage. With the largest channel array in the industry, Arbe's radar offers unique functionalities, including perception enhancement, free space mapping, and managing complex use cases such as detecting lost cargo on the road and detecting pedestrians, even at night. This advanced technology enhances driver assistance and supports Level 4 autonomous driving, which is essential for the trucking industry and its distinctive business models. The European truck manufacturer has conducted extensive evaluations of Arbe's imaging radar chipset to confirm that it meets rigorous performance standards. The process involved equipping a fleet of trucks, conducting comprehensive field trials, and gathering extensive data to demonstrate the superiority of imaging radar, compared to other front sensors such as lidar and conventional radar. The manufacturer is now installing cutting-edge radars based on the Arbe chipset in trucks for the following phase of developing safety and autonomy applications for its next-generation vehicle platform.

Nayax Announces a New Collaboration with Tadiran and the Grivo App

Nayax Ltd. (Nasdaq: NYAX; TASE: NYAX), a global commerce enablement payments and loyalty platform designed to help merchants scale their business, announced two new collaborations with leading energy companies in Israel – Tadiran and the Grivo app. To help promote a green energy future in Israel, Nayax developed a charging station management and energy management system (CSMS) based on the OCPI and OCPP protocols, well-known global standards, which, along with its advanced payment solutions, allows charging network operators to provide charging services worldwide. As part of the collaboration with Grivo, a leading digital platform provider for charging services (EMSP), charging station operators who manage their network through Nayax’s system will be able to operate their stations via Grivo and gain exposure to approximately 50,000 electric vehicle drivers in Israel using the Grivo app. The agreement with Tadiran New Energy, which has hundreds of public and private charging stations nationwide, will provide a credit card payment solution for Tadiran’s charging stations. Nayax’s cloud-based technological solution eliminates the need for integration with the charging station manufacturer, making it easy to add a credit card reader terminal to any charging station. Moreover, a single credit card terminal can serve multiple charging stations located in proximity, such as payment in a parking lot through a payment station.

Lithium-ion Batteries Recycling Plant Inaugurated Near Dimona

The first plant in Israel to recycle lithium-ion batteries for transportation was inaugurated. With an investment of millions of NIS, the plant for the recycling of lithium-ion batteries from transportation, from bicycle batteries and electric scooters to car batteries was inaugurated in the Rotem Industrial Park adjacent to Kriya for nuclear research in Dimona. The new Batte-Re factory will employ 15 workers from its first day and should grow to dozens after being built for a year. This is the first plant of its kind in Israel. The factory will charge a handling fee for proper handling of the battery, which becomes not only toxic at the end of its life but can also catch fire. In addition, it will sell the recycling products, chief among them the BLACK MASS black powder, which is the mixture of the precious metals of the battery.

Tadiran New Energy to Start Marketing a Mobile Charging Station for EVs in Israel

After the slow and fast charging stations for electric cars, Tadiran New Energy will market in Israel another type of charging station - a mobile charging system based on a large battery with a capacity of 185 kWh. In Tadiran, the system is indeed called a "robot", but it is not autonomous, and the transportation of the large battery - Moving at a speed of up to 5 km/h - is done using a remote with a joystick, connecting the car to the system will be done manually. The system, produced by the Chinese Gotion, allows fast charging up to a power of 60 kilowatts in direct current or slow 22 kilowatts in alternating current. The battery can provide charging for about ten cars and provide them with a driving range of at least 100 km until they can connect to a more organized position. Tadiran plans to sell the system, whose price reaches tens of thousands of dollars, to sites where the electricity supply is limited, making it difficult to install permanent charging stations. The portable battery can be charged from a three-phase outlet or a car charging station.

Led by GM Ventures, Addionics Raises $39 Million Series B to Drive Cost-Efficient EV Battery Innovation

Addionics, a global leader in battery technology, announced its Series B funding round of $39 Million. The round was co-led by GM Ventures and Deep Insight, with participation from Scania and new and returning strategic investors. Addionics is a leading manufacturer of 3D Current Collectors, which drive significant battery manufacturing and performance benefits. With better heat dissipation throughout the electrodes, batteries using Addionics provide faster charging time, increased power, and improved stability, resulting in better-performing batteries at a lower cost. The added benefit of the Addionics drop-in solution allows manufacturers to seamlessly integrate the 3D Current Collectors allowing for cost-effective production and rapid deployment. The new financing round will lay the groundwork for future manufacturing facilities for the Addionics 3D Current Collector solution, help enable faster commercial distribution for leading partners, and solidify R&D efforts to build best-in-class EV battery technology. Working with the majority of the ten biggest global automotive OEMs and battery manufacturers, the funding will help meet the growing demand for Addionics 3D Current Collectors.