Major Automotive Global Trends - May 2025

Global

The turmoil in the US, China, and the EU’s trade war carried on in May

The trade war that escalated after the Trump administration's decision to impose tariffs on all imports to the US remained active. On May 12th, an announcement was made stating that the US administration and the Chinese government had reached an agreement on a “halt” in their trade war, under which the mutual tariffs imposed by both parties will be frozen for 90 days. The pause is meant to allow a window for negotiations on a long-term agreement between the two superpowers.

As a result, the sweeping 145% tariff hike on imports from China to the US, announced in early April, was canceled and replaced with a tariff of only 30%. The tariff includes the basic 10% tariff, which existed before the Trump administration, plus a 20% tariff that Trump originally intended to impose. In addition, sanctions on Chinese-made ships docked in US ports were lifted.

China, for its part, lifted the three-digit reciprocal tariffs it had imposed in response to imports from the US, especially on automobile imports. The reciprocal move is also expected to result in the lifting of the freeze on exports from China to the US of rare minerals, which are essential for industry in general and the automotive industry in particular, of which China is the world's almost exclusive exporter.

However, on May 23, the Trump administration threatened to impose a 50% tariff on all exports from the EU to the US in early June, including vehicles, on which the tariff is currently at 25%. This is because, according to President Trump, he is frustrated with the European attempt to stall. According to him, the messages indicate that the Europeans are unwilling to reach an agreement. The administration spokesman added that the EU's proposals were not "Of the same quality" as the proposals submitted to the US by Other trading partners.

Initially, EU spokespeople responded in a tough tone, saying that "The EU stands ready to defend its interests". However, two days later, the tone had changed, and the US administration announced that the deadline for imposing the specified tariffs had been postponed to July 9 after "Very good talks" with the EU. According to various publications, the change in approach came after a "Conciliatory" message sent to Trump by the EU presidency. According to reports from Europe, the EU Commission is currently formulating a package of measures to ease the import of American goods into Europe.

South-East Asia Q1 figures: general weakness in the market, Vietnam strengthens

A slight decrease in auto deliveries in East Asia was registered in the first quarter of 2025, but Vietnam strengthened, as revealed from figures published in May by NIKKEI. The growth in Vietnam stems from a low motorization level and a good economy, driving a higher growth rate than other countries in the region.  

Southeast Asia’s five largest auto markets – Indonesia, Malaysia, Thailand, the Philippines, and Vietnam – delivered 732,898 vehicles in the first quarter, down 1.7% from the same period last year. In Vietnam, where CVs and trucks are the main growth drivers of the auto market, sales rose by about 22%, although the numbers are still relatively small. Sales of hybrid vehicles in the country rose by about 80% from a year earlier.

Analysts in Vietnam expect private vehicle sales in the country, excluding local manufacturer VinFast and some luxury brands, to grow by 15% in 2025, mainly thanks to continued improvement in consumer spending, continued investment in sales promotion by automakers, and the introduction of fuel-efficient models.

However, the forecast does not take into account the possible negative consequences of the imposition of tariffs in the US on goods imported from Vietnam. It is estimated that the final tariffs imposed on imports from Vietnam in the US will be 5% to 10% higher than the overall average, and higher tax rates may affect vehicle sales or supply forecasts.

It should be noted that official sales data for the Vietnamese market comes from the Vietnam Automobile Manufacturers Association, of which VinFast and Hyundai Motors are not members. If their sales are added to the first-quarter vehicle sales figures in Vietnam (118,813 units), they will surpass sales in the Philippines (117,074 units).

Sales in the Philippines decreased by 7% in the first quarter. Sales of private vehicles there fell by 13.7%, while sales of private internal combustion engine (ICE) vehicles declined by 14%, and sales of EVs increased by 19%.

Malaysia’s auto market saw a 7.4% decline in sales to 188,100 units in the first quarter. Industry executives expect EV sales in Malaysia to increase later this year, as Chinese and local brands enter the growing segment.

USA

The republicans in Congress are promoting legislation that will cancel governmental tax benefits for EV buyers

In early May, Republican representatives in the US House of Representatives submitted a bill to eliminate government tax credits for EV buyers. The proposal first appeared on President Trump's political agenda before the election, but now more information has been revealed about the planned measures and the timetable.

According to the draft law, the tax credit, which currently stands at $7,500 for a new EV and $4,000 for a used vehicle, will be completely eliminated on December 31, 2026. However, electric models from automakers that have already sold more than 200,000 units of the same model will lose eligibility for the subsidy at the end of 2025. The initiative is part of a larger tax package initiated by the Trump administration, which still needs to be approved by the House of Representatives and the Senate.

American media reports that President Donald Trump intends to use the funds saved in this program to finance other government measures.

In 2024, the US Treasury Department granted tax refunds to EV buyers in the amount of approximately $2 billion. Although the list of models eligible for the tax refund was significantly reduced as early as January 2025, commentators claim that the elimination of EV refunds is a matter of principle for President Trump, who has previously denounced them as “Part of the new green scam”.

In addition, Republicans propose to eliminate the “Green” loan program for corporations, which in recent years has supported many joint ventures in the battery sector in the US, such as the initiative of FORD and SK On to build three battery manufacturing plants in Tennessee and Kentucky.

The bill also proposes to eliminate the Biden administration’s goals for reducing the average fuel economy of automakers’ model lines and greenhouse gas emission reduction targets from 2027 onwards. In February, the US government had already frozen subsidies for charging infrastructure in the US, which were expanded by President Biden.

This bill has already been heavily criticized, among others, by the US Electric Transportation Association, which warned that the new policy is short-sighted, abandons US leadership in energy innovation, and will give a “Tremendous marketing advantage” to competitors from China.

The US Senate voted to cancel California's ban on the sale of ICE vehicles starting in 2035

The state of California has been considered a kind of "Independent territory" in the US when it comes to its environmental vehicle regulations. Among other things, the state approved a regulation at the beginning of the decade that banned the sale of new vehicles with internal combustion engines (ICE) starting in 2035. However, on May 22, the US Senate voted to repeal the order even though it is still unclear whether it has the legal authority to do so.

The order was issued by California Governor Gavin Newsom in 2020 and was translated into practical regulations by the California Air Resources Board (CARB) in 2022. The regulations have been somewhat softened over time and stated that automakers will not be allowed to sell vehicles with "Net" ICE propulsion starting in 2035, but will be able to continue to sell plug-in hybrid vehicles (PHEV) provided that their electric driving range is at least 50 miles (about 80 km) in real-world conditions.

In addition, it was determined that PHEV vehicles cannot account for more than 20% of each automaker's total sales, with the remaining 80% required to be fully electric or fuel cell vehicles.

The California regulation has been duplicated and adopted by eleven other US states, including New York, Massachusetts, and Oregon. It is based on a special exemption previously granted by the US Environmental Protection Agency (EPA) to states to ban the sale of ICE vehicles in their territories. The House vote is now aimed at repealing the exemption.

The key question is whether the Senate has the authority to cancel the EPA exemption. At present, it seems that the issue will end up in court.

The Democratic governor of California has already expressed disappointment with the decision and attacked the vote, arguing that the plan to reduce vehicle emissions is essential for the US to compete with China in the EV sector. He said, "Big polluting companies and the government's propaganda machine have managed to 'buy' the Republican Party". He added that the decision is illegal.

On the other hand, the Alliance for Automotive Innovation, a lobbying group that includes automakers such as GM, Hyundai, Toyota and VW, warned before the vote that if California implements the regulations, automakers could be forced to significantly reduce the number of vehicles they offer for sale in California in order to increase the share of EVs in the sales mix.

The organization’s president called the House vote on the issue “A welcome and focused move, designed to prevent the inevitable consequences of the (California) regulations on the labor market and industry”. The decision is a victory for this lobby and a setback for California’s independent environmental policy.

Earlier, the Senate also voted to revoke another EPA approval, given in 2023, for California’s plans to increase the number of zero-emission heavy-duty trucks in its territory. In this case, too, the question arises whether Congress has the legal authority to carry out the cancellations.

It will be recalled that in March, the EPA announced that it would reexamine the emissions standards set under the previous administration for vehicles from the 2027 model year onwards – a move that President Donald Trump announced on his inauguration day. In addition, another law imposes an annual “Fine” of $250 per EV for “Road maintenance” and postpones emissions regulations set to encourage automakers to produce more EVs.

17 US states demand the continuation of subsidies for the establishment of EV charging networks

The Trump administration's directives to freeze funding for EV charging infrastructure across the US, announced in February, continue to cause a stir. During May, 17 states, led by California, filed lawsuits against the US government on the issue.

The plaintiffs claim that President Trump is illegally withholding billions of dollars in guaranteed funding for charging networks, which has already been approved by a bipartisan majority in Congress. The lawsuit asks the federal court to declare the Trump administration's guidelines illegal, to cancel the measures, and to prevent the administration from withholding the funds.

It should be recalled that several weeks after Donald Trump took office, the administration suspended funding for charging through a memorandum, distributed by the Federal Highway Administration. The guidelines prohibited states from committing to new investments under the National Electric Vehicle Infrastructure (NEVI) program until new guidelines on the subject were received from the administration.

The plaintiffs claim that the FHWA's illegal guidelines deprive states of billions of dollars allocated to them, ignore congressional orders, and violate the US Constitution. They also say they are hurting states’ ability to build the charging infrastructure needed to make EVs more affordable, making it harder to combat climate change and support the states’ green economies.

The 17 states are asking the court not only to declare President Trump’s directives illegal but also to “Permanently block the administration from withholding funds.”

According to the governor of California, one of the leaders of the move, “When America backs down, China wins. President Trump’s illegal action to withhold funds for EV infrastructure is another gift to China, which will cost thousands of American jobs…”

California’s EV infrastructure plan, approved by the federal government under President Biden, called for the construction of hundreds of thousands of additional charging stations for private and heavy-duty EVs and the gradual expansion of charging stations for medium and heavy-duty trucks and buses. These charging stations will be financed through public and private investments.

Analysts: Car production in North America is expected to decrease following tariffs. In the meantime, car prices continue to climb

In recent months, analysts, consulting firms, and auto industry executives have warned that tariffs on auto imports and parts imposed by the Trump administration could lead to a decline in North American auto production. Preliminary data released in May shows that this trend has already begun to materialize.

A study published in May by AutoForecast Solutions estimates that North American auto production is expected to decline by about 126,000 units in the second quarter of this year due to the imposition of tariffs. In addition, the company expects total auto production to fall to 14.9 million vehicles in 2025.

The estimate is based on production adjustment plans published by US automakers through May 1, and includes both production cuts and expansions. Although this amount represents less than 1% of the 16 million vehicles produced in North America in 2024, it highlights the initial impact of tariffs on the auto industry.

The study authors write that “It takes three to four years to get a new plant up and running. It’s not an overnight process. Therefore, in the interim period, we expect a decline in North American auto production". The study states that the increase in production costs due to tariffs, especially in Canada and Mexico, is the main cause of the expected decline.

It should be recalled that in April of this year, the Trump administration imposed a 25% tariff on imported new vehicles, and in May it extended the tariffs to spare parts, except for those imported from Canada and Mexico and meeting the terms of trade.

The White House continues to negotiate with various trading partners, but since Trump took office, trade rules have changed frequently. Trump himself has made it clear that he does not intend to eliminate the tariffs and claims that they are essential for the development of American industry. As a result, automakers and parts suppliers are considering expanding production in the US, but building new factories takes time, and a further decline in production is expected in the near term.

AutoForecast Solutions’ updated forecast predicts a decline in production to 14.9 million vehicles in North America in 2025, compared to 16.01 million vehicles produced in 2024.

Executives at major auto parts manufacturers expressed concern in talks with investors about the expected decline in production in the second half of the year. Suppliers, who depend on manufacturers, called for maintaining stability in production even at the cost of hurting profitability.

Analysts estimated in May that the tariffs would add approximately $3,400 to the average car's cost by the end of 2025. According to estimates, the increase in prices will cause a decrease in demand and force manufacturers to cut production. On the other hand, some manufacturers are considering expanding production of certain models in the US, subject to the availability of production capacity, workers, and local supply chains.

It is still unclear what the final extent of the decline in production will be and how long it will take to recover, especially in light of ongoing trade negotiations and uncertainty.

Meanwhile, data from US auto trading giant COX AUTOMOTIVE, released in May, indicate a consistent increase in new vehicle prices in April following the imposition of tariffs.

The average transaction price for a car in April rose 2.5% compared to March, more than twice the usual rate of increase in recent years. The increase could have been higher if not for sales promotions by manufacturers and dealers, which were designed to maintain the momentum in demand.

However, a decline in the number of vehicles in US dealership inventory could push prices up. The company estimates that the inventory of unsold vehicles at dealerships is currently less than 2.6 million vehicles and is likely to decline as sales increase and importers reduce imports. Prices of new imported vehicles, which are directly affected by the 25% direct tariffs, could rise by 10% to 15%, while inventories of vehicles whose prices are not affected by the tariffs could rise by 5%.

The COX Used Car Value Index also showed that wholesale prices of used vehicles rose 4.9% YOY in April and about 2.7% from March.

GM suspends $55M Hydrogen fuel-cell project

The EV industry in the US is not the only one suffering from the reversal of the “Green” trend led by the Biden administration. The hydrogen vehicle industry and related infrastructure are also currently at risk.

One example is the state of Michigan, which in recent years has encouraged the establishment of hydrogen energy and battery production plants in its territory. However, most projects are now frozen, scaled back, or shelved altogether.

One prominent example is GM’s $55 million joint project with automotive component manufacturer Piston Automotive, designed to produce hydrogen fuel cells at a plant in Detroit. The reason for the suspension of the project is unclear, but in the US, it is noted that the American automotive industry is currently facing many challenges.

On the one hand, it is negatively affected by the Trump administration's tariff policy, which is expected to cause GM an estimated loss of about $5 billion this year. On the other hand, it is facing changing regulations and the need to prepare for future propulsion technologies.

As mentioned, this is just an example. In Michigan, several plants have been built in recent years to produce hydrogen for refueling, but most of them have failed to take off. Although government officials are still optimistic about the future of the field, they admit that the payback period on the investment will be longer than expected.

During Biden's term, the US Department of Energy granted subsidies totaling about $750 million to GM and other companies that entered into hydrogen projects. Some of the funds were intended to purchase equipment for the Detroit plant, but GM has not yet received the necessary budget for this, and continued support under the Trump administration is uncertain.

Europe

The European parliament confirmed leniencies in calculating emissions and fines to automakers from 2025 onwards

In early May, the European Parliament approved the European Commission's proposal to ease the 2025 CO2 emissions targets and the method for calculating fines for car manufacturers who fail to meet the targets. The proposal was adopted by a majority of 458 votes to 101 with 14 abstentions. Later in May, the proposal was approved by the Council of the EU.

By making CO2 emissions targets more flexible, the Commission aims to improve the competitiveness of the European car industry. The proposal allows car manufacturers to achieve the CO2 emissions targets set for 2025 by means of a “Three-year average", which will be calculated between 2025 and 2027. The leniencies are the result of a dialogue between the Commission and the car industry that took place earlier this year, although environmental groups in Europe claim that this is a capitulation to the car industry lobby.

The new regulations stick to the original final targets of reducing average CO2 emissions from new cars and trucks over a five-year period. The reduction values ​​for the period from 2025 to 2029 are equivalent to a 15 percent annual reduction in CO2 emissions compared to 2021 levels.

However, car manufacturers will no longer be required to meet specific emissions targets for 2025, 2026, and 2027; instead, the multi-year average emissions will be taken into account. At the end of 2027, the average will be calculated, and car manufacturers that have achieved their CO2 emissions target, averaged over three years, will be exempt from fines. This is, of course, assuming that the EU does not change the targets again.

One criticism of the plan in Europe is that car manufacturers, who have already met the stricter CO2 emissions targets for 2025 thanks to an increase in sales of EVs, will sell more models with ICE engines the following year, which could cause a further deviation from the final CO2 emissions targets.

The EU announces a "CO2 emissions trading system" to enter into force in 2027, which will also have implications for EVs

In May, the EU unveiled the new CO2 emissions trading to be launched on January 1, 2027. The system is expected to increase fuel prices in Europe, and the main idea is that the revenues collected through the system will be used to finance the transition to EVs and for social needs. However, the exact effects are still unclear due to the lack of concrete forecasts and decisions.

The current method in Europe for collecting an "Emissions penalty" is by imposing a fixed tax on gasoline and diesel. Pricing is based on an "Environmental price" calculation of approximately 55 euros per ton of CO2 (2025 prices). However, the "Fixed price mechanism" is to be replaced by a European free trading system called ETS2.

The program will also apply to the transportation sector and will pre-trade all emissions caused by burning fuels. Fuel suppliers, mainly oil companies, will be required to purchase "Emission certificates" for their products at auction, with the end customer not being directly involved in the trading process. The number of certificates will be limited and will be reduced by 5.1% each year. This limitation is expected to lead to a constant increase in CO2 emission prices unless fuel companies take restrictive measures to significantly reduce emissions.

One of the fundamental problems with the system is the lack of accurate forecasts of future emission prices. The existing estimates for 2030 range from 48 to 350 euros per ton, compared to the current price of approximately 55 euros. Therefore, it is very difficult for fuel companies and consumers to currently estimate the amount of the future price increase per liter of gasoline or diesel.

In Europe, it is claimed that pricing emissions alone and internalizing them in the price of fuel is not enough to create a significant behavioral change, and that complementary measures are needed, such as limiting the maximum speed on highways, which will lead to immediate savings in emissions. At the same time, financing and information programs will also be required.

According to the proposed plan, about 25% of the income from trading in emissions certificates will flow into the EU’s Social Climate Fund, while the remaining 75% will be transferred to member states. The fund is intended to reduce social gaps between countries and economic classes, and therefore, Eastern European countries are expected to benefit more from it. The revenues that remain in the hands of the member states could finance incentives for the purchase of EVs or subsidies for the production of "Green" electricity. In addition, a program to assist low- and middle-income households based on the Social Climate Fund will be launched.

There is agreement that the program will increase the running costs of ICE vehicles and, on the other hand, reduce the cost of using an EV.

Stellantis halts the move to the “Direct marketing” model in Europe

Less than three years ago, large European auto manufacturers decided to change their existing contracts with their distribution networks and shift to a model similar to that of Tesla. That is, car dealerships that are controlled directly by the manufacturer. However, this strategy hasn’t gained momentum, and now we can sense the beginning of a change in policy.

In May, the Stellantis automotive group announced that it was freezing its plan to change the ownership structure of its distribution agencies in Europe and would keep existing contracts with dealers. At the same time, the company is expected to update its plan to expand its vehicle production in Italy.

It will be recalled that as part of efforts to cut costs and transition to EVs, the group's previous outgoing CEO, Carlos Tavares, initiated a plan to terminate contracts with thousands of car dealerships and transition to a new agency model in which the manufacturer controls price and sales.

Many of the group's long-standing agents in Europe have expressed opposition to the transition to the new model, which reduces the profitability of many agencies. Now, the new CEO has announced that the plan is suspended except in Austria, Belgium, Luxembourg, and the Netherlands, where the change has already taken effect.

The company is expected to turn to the EU for assistance against the backdrop of high costs and stricter regulations. The requests include, among other things, a request to launch a pan-European scrapping program for polluting vehicles that are more than 10 years old and a subsidy for the production of batteries for EVs at a rate of 40 euros per kilowatt, almost half of the production costs.

China

Lithium prices in China drop below the “Profitability line” due to lowered demand and oversupply

The global lithium oversupply and slowing demand for EVs continue to push down the price of lithium, of which China is the largest producer. According to data released in May, the average price of battery-grade lithium carbonate fell to 65,050 yuan per ton (about $6,000), below the break-even point for most Chinese producers.

The break-even point in China is estimated at about 70,000 yuan per ton (about $9,720). Since the beginning of 2024, the market price of battery-grade lithium carbonate has fallen sharply, posing a serious challenge to the lithium industry in China and around the world.

Lithium carbonate, the main raw material for car batteries, has experienced sharp price fluctuations in recent years. However, the current decline threatens to “Put out of the picture" many suppliers and manufacturers.

According to reports in China, one of the leading Chinese lithium suppliers ceased operations at the end of 2024 and is now facing lawsuits for late payments to suppliers and failure to fulfill orders. Many small and medium-sized businesses operating in the industry are also now on the verge of collapse because the current price level does not allow for profitability.

Some manufacturers in China are trying to find a solution to the problem by developing advanced production and processing methods that will reduce prices. However, the big missing piece is the demand for lithium, which is currently at a low point. Despite growth in battery production, the penetration rate of EVs in China is already very high, so that growth is slowing. On the other hand, demand for lithium for the energy storage market is still in its infancy and does not constitute a significant incentive to create demand for the raw material. In addition, traders are resorting to the tactic of stockpiling, which creates excess supply and heavy downward pressure on prices.

The situation is putting pressure not only on battery manufacturers but also on the lithium supply chain. Despite the decline in raw material costs, fierce competition in the battery market is making it difficult to translate savings into profits. In China, it is estimated that without a significant increase in demand for batteries, prices may remain low; however, over time, weaker players will exit the market, and a balance will be established between supply and demand.

South Korea
 

US imposition of tariffs brought a collapse in South Korean auto exports, yet the Koreans remain optimistic

At the beginning of May, the Korean Customs announced that, following the imposition of 25% tariffs on vehicles imported to the US, vehicle exports from Korea to the US dropped dramatically by approximately 30.4%. Total exports from Korea, including vehicles, fell by 23.8%.

However, in Korea, it is believed that the trade war, initiated by President Trump, has reached a turning point with the achievement of a compromise agreement between the US and China in early May and that this will also have a positive impact on the negotiations between Korea and the US regarding tariffs and the future of exports from Korea in general.

The double-digit decline in export figures is a direct indication of the impact on the Korean economy of the 25% tariff imposed by the Trump administration on imports of vehicles and goods from South Korea. During this period, vehicle exports fell by 23.2%. Steel exports, which were subject to tariffs since March 12, fell 1.2%, while auto parts exports, which were subject to tariffs in May, fell 42.6% in early May.

In the agreement reached between the US and China in early May, it was decided that the US would reduce the tariff rate from 145% originally to 30%, including the basic tariff of 10% that originally existed. At the same time, China also reduced the tariff rate on imported US goods from 125% to 10%. Following the reduction or elimination of tariffs, some in the US believe that this is an opportunity to open renegotiations on the decision to impose reciprocal tariffs of 10%–50 % on various countries, including Korea, depending on the size of the trade deficit with them.

Analysts believe that Korea, which has a free trade agreement with the US and is considered an ally and preferred negotiating partner, will be one of the main beneficiaries of the turnaround and can expect a more friendly tariff agreement. That will happen especially if the discussion includes cooperation in the shipbuilding industry, a contract to purchase liquefied natural gas (LNG) from Alaska, as well as investments which US Treasury Secretary Bassent described as a "Good offer”.

The International Trade Research Institute of the Korea International Trade Association estimated in May that "Korea now has more tools to request (from the US) exemption from tariffs on vehicles, steel, and more."

Japan

In an attempt to reach a trade compromise with the US, Japan offers to subsidize Tesla charging stations

In May, Japanese media reported that the Japanese government is expected to offer subsidies for the deployment of Tesla charging stations in Japan as part of negotiations with the US on tariff reductions. Currently, the Japanese government only subsidizes charging stations that meet the Japanese standard for charging EVs, of which Tesla is not a part.

The Japanese standard for fast charging is one of the oldest on the market, having been launched in 2010 by the Tokyo Electric Power Company. Today, this standard is considered outdated and less efficient than the new global standards. Tesla vehicle owners can only connect to such chargers in Japan using an adapter. In the past, the US Department of Commerce has expressed dissatisfaction with the "Adverse discrimination" of Tesla's charging network by the Japanese subsidy program and called on the Japanese government to adopt additional charging methods.

At the same time, the Japanese government has signaled its willingness to negotiate a reduction in US tariffs on goods and services. For their complete elimination as initially demanded. These tariffs currently stand at 25% for vehicles and 24% for all other goods.

Israel

EV charging regulation in Israel expands: The Ministry of Energy is promoting legislation to provide real-time information on public charging stations, and the Ministry of Finance is considering including home charging within the value of use.

Israeli regulators are preparing to expand their ability to manage and supervise the charging infrastructure in Israel and to include home charging in the taxation mechanism. In the area of ​​public charging, the goal is to create a national charging management system that will connect public charging stations across the country to a real-time information interface. Such an interface will not only improve service to consumers but will also allow energy entities to manage and optimize the energy consumption of the national charging network, especially during peak hours. The Ministry of Energy has even published draft regulations for consideration on the subject.

According to the explanation of the regulations, "Promoting the EV is part of the Israeli government's policy, as expressed in a large number of government decisions, which specifically concern the promotion of clean transportation and the reduction of greenhouse gas emissions. The purpose of the proposed regulations is to regulate information sharing and interface between players in the economy, in order to create favorable conditions for the use of EVs , and to alleviate the "Range anxiety" that constitutes a significant barrier to EVs ... The regulations refer to public charging stations only, and within their framework, an obligation is established for charging providers to continuously transfer data to a central database, in order to create an information platform available to the public users, for the efficient use of the charging stations. The information platform will include basic details such as location, supplier, inquiries, quality, price, and more..."

"The second aspect is the provision of information to the regulator, for the purposes of supervision and policy-making. Within this framework, an obligation is established for various parties involved in the industry and importers of charging stations, installers, and charging providers,  to report periodically on charging stations, in accordance with the director's requirements."

The regulations stipulate that the information will be open to the public to use so that an EV owner can navigate and choose a station according to its fixed and variable characteristics, such as the average charging rate it provides and the number of free and/or working charging sockets. In addition, the regulations propose imposing a reporting requirement once every six months from various stakeholders in the charging industry for the purpose of "Monitoring by the director and formulating policy". Among other things, charging management companies will be required to provide periodic information on charging patterns at the managed stations.

At the same time, the Ministry of Finance is currently examining a technical option to calculate, for the purpose of determining the value of use, the cost of charging the vehicle in a private charger located at the home of an EV owner and separate it from the total cost of that subscriber's electricity bill. Currently, employers are having difficulty providing employees with reimbursement for home charging, which is carried out from the general electricity grid, and calculating this as a recognized expense for tax purposes. The move is part of a general reform of the value of use for rechargeable, electric, and plug-in vehicles, which the Ministry of Finance is expected to publish at the end of the year.