Monthly Review June 2025

Preface – Economic Climate

June 2025's intense conflict with Iran (June 13-24) tested Israel's economic resilience as businesses navigated unprecedented regional warfare. While the twelve-day period caused genuine disruptions to supply chains and routine operations, Israel's diversified economy proved capable of weathering the storm. The automotive sector faced temporary challenges but maintained core functions, reflecting the broader business community's determination to sustain operations despite adversity.

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 $56,188, and its growth rate in Q1 of 2025 was 3.7%.

Israel maintains a 5.0% deficit of the GDP from July 2024 to June 2025.

The debt-to-GDP ratio increased to 69% in 2024, and the unemployment rate stood at 2.7% as of June 2025. As of June 2025, the annual inflation growth rate was 3.3%. In June 2025, the short-term interest rate remained at 4.5%, while the long-term interest rate stood at 1.94% (January 2025).

Statistical Profile

Society

Population (June 2025): 10.098 Million

Economy

GDP per capita (June 2025): $ 56,188

Inflation (June 2025) (Annual Growth Rate): 3.3% 

Current Account Balance (2024): 4.7% of GDP

Trade in Goods and Services (June 2025): $10.48 billion

Finance

US Dollar Exchange rate (June 2025, Avg.): NIS 3.486

Euro Exchange rate (June 2025, Avg.): NIS 4.007

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

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

Government

Debt to GDP ratio (2024): 68%

Deficit to GDP (July 2024 - June 2025): 4.9% 

Motorization

Level of Motorization (2024): 421 Vehicles/1,000 Residence

Innovation and Technology

Gross Domestic Spending on R&D (2023): 6.3% of GDP

Environment

CO2 Emissions (2023): 6.7 Tonnes Per Capita

Jobs

Employment Rate (June 2025): 62.6% of the Working-Age Population

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

New Cars and CV Registrations

 New Passenger Car Registration: January-June 2025

Passenger car registration: a decrease of 34.4% compared with June 2024.

In June 2025, the Israeli passenger car market registered 17,025 new cars - a decrease of 34.4% compared with June 2024. Since the beginning of the year, 159,666 new cars were registered, an increase of 2.9% in deliveries compared with last year. Since January, 40,543 new cars with electric propulsion (BEV+PHEV) were registered. The market share of pure EVs currently stands at 16.4%.  

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

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

Commercial Vehicles above 3.5 tons registration: -36.6% compared with June 2024.

In June 2025, the Israeli market for CVs above 3.5 tons registered a decrease of 36.6% in deliveries with 824 new registrations, compared with 1,300 units in June 2024. Since January, 7,314 CVs and Buses have been registered, a decrease of 3% compared with last year.

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

New Bus Registration According to Brands: Jan-June 2025

Israel's Auto and Auto-Tech industry

VW Unveils Series Production of Autonomous ID. Buzz with Mobileye and Innoviz Technology

VW’s tech company MOIA unveiled the first series production fully autonomous vehicle from Volkswagen, specially optimized for mobility services. The vehicle is part of a comprehensive end-to-end solution that also includes a software ecosystem and services for operators of autonomous mobility services. MOIA’s complete solution brings together all components needed to transform an autonomous vehicle into a ready-to-use mobility system. It includes a vehicle homologated to automotive standards, featuring Mobileye’s self-driving system, along with a proprietary Autonomous Driving Mobility as a Service (AD MaaS) Ecosystem Platform. The software uses artificial intelligence to manage fleets in real time, assist passengers automatically, ensure safety, and integrate seamlessly into existing booking apps. It also meets key regulatory requirements for SAE Level 4 automated vehicles, such as remote supervision and safe handling of edge-like emergency interventions. The array of sensors for the autonomous ID. Buzz, including cameras, radar, and LiDAR, is provided by another Israeli company, Innoviz.

Innoviz Technologies Awarded Top 5 Passenger OEM Development Program for L3 Global-Production Vehicle Platform

Innoviz Technologies Ltd. (NASDAQ: INVZ), a leading Tier-1 direct supplier of high-performance, automotive-grade LiDAR sensors and perception software, announced it has signed a Statement of Development Work (SoDW) agreement with a Top 5 passenger automotive manufacturer. Through this SoDW, Innoviz will supply advanced LiDAR units for the OEM's L3 highly automated series-production program with an SOP target of 2027.

Under the terms of this agreement, beginning in Q2 2025, Innoviz will develop hardware and software modifications for its InnovizTwo LiDAR to ensure seamless integration into the OEM's vehicle system, facilitating a smooth ramp towards the planned data collection campaign as the companies work toward a series production agreement. Innoviz will supply several hundred InnovizTwo LiDAR units over the coming months, which will allow both the OEM and the platform provider to adhere to the project's timeline. This integration is intended to support the OEM's next-generation eyes-off driving system, with SOP planned for 2027.

Jungo Expands Patent Portfolio for AI Telematics and Driver Monitoring Technology with Newly Granted US Patent 12,330,563

Jungo (TASE: JNGO), a leader in AI-based video telematics and driver monitoring solutions, announces its expanding global patent portfolio, with newly granted patent 12,330,563 "Adaptive Monitoring of a Vehicle Using a Camera", highlighting the company's commitment to innovation, safety, and technological leadership.

With a patent portfolio including over 40 patents, Jungo's intellectual property covers core innovations in in-cabin driver behavior analysis, video telematics, driver monitoring systems (DMS), and computer vision systems.

VuDrive, the company’s flagship product,  is an all-in-one video telematics platform designed with fleet operators, insurers, and drivers in mind - leveraging a dual-camera system, real-time AI, and comprehensive cloud dashboards to improve road safety, reduce accidents, and optimize fleet operations.VuDrive US patents include essential patents such as: Adaptive Monitoring of a Vehicle Using a Camera, System and Method for Remote Monitoring of a Human, and Method and System for Automatic Calibration of an Operator Monitor. These patents form the technological backbone of VuDrive, ensuring advanced capabilities such as distraction detection, drowsiness alerts, seatbelt and phone use monitoring, and proactive safety insights.

Foresight Signs Commercialization Agreement with Global Rail Tech Provider for up to $12 Million in Revenue Starting in 2026 

Foresight Autonomous Holdings Ltd. (Nasdaq and TASE: FRSX), an innovator in three-dimensional 3D perception systems, announced the signing of a development and commercialization agreement with Zhejiang StreamRail Intelligent Control Technology Co., Ltd., a global Chinese rail technology company, to integrate and commercialize its products for StreamRail’s customers, focusing on urban trams and metro trains. The collaboration will initially focus on a joint development project to integrate Foresight’s cutting-edge 3D perception technology into StreamRail’s transit infrastructure. The innovative obstacle detection system will use advanced sensors and artificial intelligence to detect potential hazards on rail tracks and surrounding areas, in order to significantly reduce collision risks.

Upon successful completion of the development phase, the parties will proceed with manufacturing, marketing, and distributing the innovative product to StreamRail’s customers and other third parties. The current project’s revenue potential is estimated at up to $12 million by 2029, with initial commercialization expected to begin in 2026. Under the terms of the agreement, StreamRail has secured exclusive distribution rights for the innovative solution in China, contingent upon achieving sales of at least $1.5 million during 2026 and 2027.