Monthly Review July 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 $56,491, and its growth rate in Q2 of 2025 was -3.4%.

Israel maintains a 4.8% deficit of the GDP from August 2024 to July 2025.

The debt-to-GDP ratio increased to 69% in 2024, and the unemployment rate was 3% in July 2025. As of July 2025, the annual inflation growth rate remained stable at 3.1%. In July 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): 10.106 Million

Economy

GDP per capita (July 2025): $ 56,491

Inflation (July 2025) (Annual Growth Rate): 3.1% 

Current Account Balance (2024): 4.7% of GDP

Trade in Goods and Services (July 2025): $14.58 billion

Finance

US Dollar Exchange rate (July 2025, Avg.): NIS 3.725

Euro Exchange rate (July 2025, Avg.): NIS 4.008

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

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

Government

Debt to GDP ratio (2024): 69%

Deficit to GDP (August 2024 - July 2025): 4.8% 

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 (July 2025): 62.7% of the Working-Age Population

Official Unemployment Rate (July 2025): 3% of the Labour Force

New Cars and CV Registrations

 New Passenger Car Registration: January-July 2025

Passenger car registration: a decrease of 1.3% compared with July 2024.

In July 2025, the Israeli passenger car market registered 24,730 new cars – a decrease of 1.3% compared with July 2024. Since the beginning of the year, 184,396 new cars were registered, an increase of 2.3% in deliveries compared with last year. Since January, 48,531 new cars with electric propulsion (BEV+PHEV) were registered. The market share of pure EVs currently stands at 16.2%.  

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

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

Commercial Vehicles above 3.5 tons registration: 3.5% compared with July 2024.

In June 2025, the Israeli market for CVs above 3.5 tons registered a decrease of 3.5% in deliveries with 1,237 new registrations, compared with 1,282 units in July 2024. Since January, 8,551 CVs and Buses have been registered, a decrease of 3.1% compared with last year.

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

New Bus Registration According to Brands: Jan-July 2025

Israel's Auto and Auto-Tech industry

Cornerstone laid for an innovative EV battery recycling plant in Nir-Am

Construction of a new plant for recycling EV batteries has commenced in Nir-Am as part of a large-scale initiative by BRI (Battery Recycling Israel). The project is led by BRI, along with strategic partners such as Samelet Group, Dan Transportation, Meir Group, Mobilitech Capital, and the Nussbaum family. The plant is due to start operating already in 2026 with a capacity to recycle up to 10,000 tons of batteries annually. Thanks to the purchase of special equipment and a collaboration with the German URT company that has successfully implemented its knowledge in similar plants across Europe, the plant will enable the recycling of 90% of the materials in the batteries, ready for use in industry and in the manufacturing of high-quality new batteries. The cost of establishing the new plant is estimated at 50M NIS.

Step-Hear registers an American patent for an innovative technological system for making public transportation accessible for people with disabilities

Step-Hear Ltd, a subsidiary of 'Mahalev' from the Tigbur Group, announced the receipt of approval for the registration of US patent No. 12,343,304 for an innovative technological system for making public transportation accessible for people with disabilities, senior citizens, and other users. The patent protects a unique development of the company, which, after its installation, enables advanced accessibility at bus, train, taxi, and other transportation centers, through a smart system linked to a mobile application. This technology allows users to receive a customized and accessible service in real time, thus reducing barriers, improving the user experience, and promoting equal opportunities in the public space. In addition, the company announced that additional patent applications it has filed in various countries, including Israel, are currently in advanced stages of examination.

Ituran launches Ituran KEY - a new biometric system for deactivating the vehicle's security system with one click

Ituran KEY is a new biometric system for deactivating vehicle security systems via an App in one click. Currently, most vehicles in which a security system is installed have a 4-digit code that is used to deactivate the security system before starting the vehicle. Instead, Ituran's new system offers advanced biometric identification via a smartphone with facial recognition or fingerprint, eliminating the need for a keypad installed in the car. Using the app, the driver identifies himself securely and deactivates the security system with one click without having to type a code every time and without installing a keypad in the vehicle. If the customer runs out of battery on his mobile phone, there is a backup remote control to deactivate the system. Additional drivers, such as family members, can be easily added, and they too can deactivate the system from their mobile phone. The system is currently operating among leading car importers and is expected to be available for all new vehicles soon.

Sensrad Begins Delivering 4D Imaging Radars Powered by Israeli Arbe's Chipset

Arbe Robotics Ltd., provider of perception radar solutions, announced that Sensrad, a Swedish radar Tier-1 supplier, has begun delivering its first radar series powered by Arbe’s chipset. The radars will be used in a range of applications, including an autonomous off-road vehicle project for the defence sector and a smart road infrastructure initiative in China. Sensrad recently placed a significant order for Arbe’s chipsets, which will be integrated into several programs in the US and China. Sensrad’s radar solutions are designed to expand the use of imaging radar beyond traditional automotive markets, into sectors such as defence, infrastructure, and industrial systems. In a move to support the rollout of these systems, Arbe and Sensrad have signed a support and maintenance agreement. The agreement establishes a collaborative framework between Arbe’s engineering and customer support teams and Sensrad’s development efforts. The aim is to ensure that all systems built on Arbe’s technology meet performance, reliability, and efficiency goals across different deployment environments.

Sparsh CCTV, Innoviz Technologies, and Cron AI Partner to Offer a Security and Intelligent Transport System (ITS) Solution Across India

Sparsh CCTV, one of India's leading manufacturers of smart cameras and integrated surveillance solutions with multiple government and enterprise clients in India, Innoviz Technologies Ltd. (NASDAQ: INVZ), a global automotive leader in LiDAR solutions, and Cron AI, a leading deep learning 3D perception provider, announced they are collaborating to offer an integrated LiDAR-camera-vision perception platform, purpose-built for large-scale deployment across transport, perimeter security, railways, and critical infrastructure. A true sensor fusion platform, with 3D point cloud, video vision, and edge-native AI. With a footprint across 120+ cities, a network of 2,000+ partners, and an annual production capacity of 500,000+ security devices, Sparsh will lead go-to-market efforts, support integration, and explore local manufacturing for the unified sensing platform. The edge-native perception nodes — combining high-performance LiDAR, deep-learning perception, and vision analytics — are expected to be part of a security infrastructure upgrade project, which is planned to go live at critical infrastructure across India. These systems are intended to deliver real-time insights into vehicle movement, pedestrian safety, and perimeter activity — all processed on the edge, without reliance on cloud compute or high-power infrastructure.

Foresight and a Leading European Vehicle Manufacturer Successfully Advance Vehicle Safety with First-Phase Testing 

Foresight Autonomous Holdings Ltd. (Nasdaq and TASE: FRSX), an innovator in 3D perception systems, announced that its wholly-owned subsidiary, Eye-Net Mobile Ltd. has successfully completed the first phase of a paid proof-of-concept (POC) project with a top European vehicle manufacturer, to validate the performance and compatibility of Eye-Net’s vehicle-to-everything (V2X) technology with the manufacturer’s vehicles for potential commercial integration. The goal of the first phase of the POC was to enable seamless connection between the driver and all nearby road users, including vulnerable road users, and to explore how Eye-Net’s technology can enable communication between the vehicle, vulnerable road users, and its surroundings, while enhancing the safety systems in the OEM’s vehicles. Eye-Net’s software development kit (SDK) was successfully integrated into an Android-based system, operating smoothly without crashes or data loss, and sending alerts through the vehicle’s display system. The tests were conducted in scenarios involving vulnerable road users hidden from view or beyond the range of the vehicle’s sensors. The next phase of the POC will include integration into the vehicle’s display system and will assess how Eye-Net’s technology can be customized to meet the vehicle manufacturer’s specific needs for potential deployment.