Monthly Review February 2025

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 advanced and participates in the OECD organization. Its current GDP per capita is $53,391, and its growth rate in Q4 of 2024 was 2.5%.

Israel maintains a 5.3% deficit of the GDP from March 2024 to February 2025.

The debt-to-GDP ratio increased to 69% in 2024, and the unemployment rate was 2.7% in February 2025. As of February 2025, the annual inflation growth rate decreased to 3.4%. In February 2025, the short-term interest rate remained at 4.5%, while the long-term interest rate stood at 1.94% (January 2024).

Statistical Profile

Society

Population (February 2025): 10.045 Million

Economy

GDP per capita (February 2025): $ 53,391

Inflation (February 2025) (Annual Growth Rate): 3.4% 

Current Account Balance (2024): 4.7% of GDP

Trade in Goods and Services (February 2025): $11.78 billion

Finance

US Dollar Exchange rate (February 2025, Avg.): NIS 3.656

Euro Exchange rate (February 2025, Avg.): NIS 3.712

Long-term interest rates (January 2025): 1.94% Per Annum

Short-term interest rates (February 2025): 4.5% Per Annum

Government

Debt to GDP ratio (2024): 69%

Deficit to GDP (March 2024 - February 2025): 5.3% 

Motorization

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

Innovation and Technology

Gross Domestic Spending on R&D (2022):6.02% of GDP

Environment

CO2 Emissions (2022): 6.2 Tonnes Per Capita

Jobs

Employment Rate (February 2025): 62.5% of the Working-Age Population

Official Unemployment Rate (February 2025): 2.7% of the Labour Force

New Cars and CV Registrations

 New Passenger Car Registration: January- February 2025

Passenger car registration: a decrease of 5.9% compared with February 2024.

In February 2025, the Israeli passenger car market registered 24,611 new cars – a decrease of 5.9% compared with February 2024. Since the beginning of the year, 71,224 new cars were registered, an increase of 12.2% in deliveries compared with last year. Since January, 14,641 new cars with electric propulsion (BEV+PHEV) were registered, a decrease of 4.2% compared with the same period in 2024. The market share of pure EVs currently stands at 15.5% (24.1% at the end of February 2024).  

New Passenger Cars Registration According to Brands: January- February 2025

New CV above 3.5-ton Registration: January-February 2025

Commercial Vehicles above 3.5 tons registration: -1.8% compared with February 2024.

In February 2025, the Israeli market for CVs above 3.5 tons registered a decrease of 1.8% in deliveries with 1,121 new registrations, compared with 1,141 units in February 2024. Since January, 2,978 CVs have been registered, an increase of 10.6% compared with last year.

New CV above 3.5-ton Registration According to Brands: January-February 2025

New Bus Registration According to Brands: Jan-February 2025

Israel's Auto and Auto-Tech industry

Cipia Unveils ADAS Capabilities for Cipia-FS10 with 360° Road and Driver Monitoring Solution

Cipia (TASE: CPIA), developer of AI-powered driver fatigue and distraction detection solutions (DMS), introduced new Advanced Driver Assistance System (ADAS) capabilities to Cipia-FS10, its safety-focused video telematics solution for fleets. With this new offering, Cipia-FS10 expands its proven DMS capabilities to include Advanced Driver Assistance System (ADAS) features powered by a road-facing camera. These include forward collision warning, lane departure warning, and tailgating detection, providing fleets with a 360° safety solution. By seamlessly monitoring both the driver and the road, Cipia-FS10 delivers real-time, actionable insights to mitigate risks, prevent accidents, and improve driver performance. This comprehensive approach enhances safety and helps fleets reduce operational costs associated with accidents, vehicle downtime, and insurance premiums. Cipia-FS10 delivers real-time alerts to drivers, such as fatigue detection and collision warnings, while equipping fleet managers with detailed analytics to reduce incidents and improve driver training programs. As an aftermarket solution, Cipia-FS10 is designed for quick and seamless installation in existing commercial vehicles. This ensures fleets can enhance safety and operational efficiency without the need for costly vehicle upgrades. The device’s AI-driven data insights enable fleet managers to optimize operations, reduce liability costs, and improve compliance with safety regulations.

Leading Charge Point Operator in China to install ZOOZ Power’s Boosting System, Marking Strategic Entry into the World’s Largest EV Market

ZOOZ Power Ltd. (Nasdaq: ZOOZ, TASE: ZOOZ), a leading provider of flywheel-based power boosters and energy management systems for enabling ultra-fast EV charging solutions, announced that it has shipped its first power-boosting system, the ZOOZTER-100, to China. The commercial arrangements were made through a related party of ZOOZ Power in China. The site where ZOOZTER-100 will be installed was developed by Yixiaoju Technology Co., Ltd, which operates numerous locations within the Orange Charging (Xiaoju) network. Orange Charging, a sub-brand of DiDi’s energy sector, is China’s largest charging network, operating over 115,000 fast chargers. As the foremost mobility services platform in China and a publicly traded company in the U.S. with a market cap of $24.3 billion, DiDi’s ecosystem offers a significant opportunity for ZOOZ Power to extend its presence in this rapidly growing market. In addition to enhancing the capabilities of Yixiaoju’s charging station, the Shanghai pilot installation will also serve as a vehicle for market penetration of ZOOZ Power’s flywheel-based power-boosting technology coupled with ZOOZ’s proven Energy Management System to the Chinese market.

UVEye secures $191 million to scale its AI vehicle inspection systems

UVeye, which has developed artificial intelligence-based vehicle inspection technology, has raised $191 million, bringing the company’s total capital raised since its inception to $380.5 million. The funding includes a $41 million equity investment led by Woven Capital, Toyota’s growth fund, with participation from UMC Capital, along with existing investors. UVeye’s systems, described as an “MRI for vehicles,” deliver precise, data-driven insights by scanning all visible vehicle components in a matter of seconds. The company’s suite of underbody scanners, tire analyzers, and 360-degree exterior detection systems has been installed at hundreds of dealerships, fleet sites, and auction lots globally. The company has previously received investments from Toyota, Volvo, Hyundai, and Honda, among other companies.

Tesla Opens its Supercharger Stations in Eilat to Non-Tesla Owners

Tesla Israel opened its Supercharger stations to non-Tesla EV owners for the first time, following the lead from Tesla US. In the middle of February, the company opened its eight charging stations in Eilat’s Ice Mall to all customers – at this time as a limited pilot. Tesla’s Superchargers, which have a maximum voltage of 250 kW, are fast, and at the same time, the cost of charging is relatively cheap compared to other charging providers. Tesla owners will continue to receive discounted rates compared with non-Tesla EV owners who will use the chargers. All other Superchargers scattered around Israel are still for Tesla owners only at this stage.