Monthly Review October 2025

Preface – Economic Climate

The Israeli economy demonstrates notable resilience following the ceasefire agreement and the return of hostages, marking a potential turning point after an extended period of security uncertainty. Economic indicators reflect encouraging trends: low unemployment and moderate inflation signal underlying economic strength, while the cessation of hostilities creates opportunities for increased business confidence and investment. However, the high deficit and rising debt-to-GDP ratio remain critical concerns that require cautious fiscal management. The forecast for growth in 2025 is bolstered by expectations that reduced security disruptions will support business expansion and consumer activity.

The Israeli economy is advanced and participates in the OECD organization. Its current GDP per capita is $59,403, and its growth rate in Q3 of 2025 was 12.4%.

Israel maintains a 4.9% deficit of the GDP from November 2024 to October 2025.

The debt-to-GDP ratio increased to 69% in 2024, and the unemployment rate was 3% in October 2025. As of October 2025, the annual inflation growth rate declined to 2.5%. In October 2025, the short-term interest rate remained at 4.5%, while the long-term interest rate stood at 3.9% (October 2025).

Statistical Profile

Society

Population (September 2025): 10.148 Million

Economy

GDP per capita (October 2025): $ 59,403

Inflation (October 2025) (Annual Growth Rate): 2.5% 

Current Account Balance (2024): 3.2% of GDP

Trade in Goods and Services (October 2025): $12.1 billion

Finance

US Dollar Exchange rate (October 2025, Avg.): NIS 3.28

Euro Exchange rate (October 2025, Avg.): NIS 3.82

Long-term interest rates (October 2025): 3.9% Per Annum

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

Government

Debt to GDP ratio (2024): 69%

Deficit to GDP (November 2024 - October 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 (October 2025): 62.8% of the Working-Age Population

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

New Cars and CV Registrations

 New Passenger Car Registration: January-October 2025

Passenger car registration: an increase of 33.3% compared with October 2024.

In October 2025, the Israeli passenger car market registered 19,367 new cars – an increase of 33.3% compared with October 2024. Since the beginning of the year, 261,404 new cars were registered, an increase of 8.5% in deliveries compared with last year. Since January 86,251 new cars with electric propulsion (BEV+PHEV) were registered. The market share of pure EVs currently stands at 20.1%.

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

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

Commercial Vehicles above 3.5 tons registration: 17.5% increase compared with October 2024.

In October 2025, the Israeli market for CVs above 3.5 tons registered an increase of 2.3% in deliveries, with 723 new registrations, compared with 707 units in October 2024. Since January, 11,619 CVs and Buses have been registered, an increase of 1.1% compared with Jan-Oct last year.

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

New Bus Registration According to Brands: Jan-October 2025

Israel's Auto and Auto-Tech industry

SaverOne Named One of the “Best inventions of 2025” by Time Magazine

TIME magazine has published its list of the best inventions for 2025, which includes 300 groundbreaking innovations that are changing everyday life around the world. Among the selected inventions is the Israeli SaverOne system, which tackles one of the greatest dangers on the road – driver distraction due to mobile phone use while driving.

This prestigious selection highlights SaverOne’s innovation in developing technology that protects the driver in real time from distractions, without the need for cooperation from the drivers themselves. In an era where distracted driving is one of the main causes of road accidents in the world, TIME’s recognition places SaverOne alongside some of the most influential and important inventions of the year.

Arbe Robotics Wins “Sensor Technology Solution of the Year” In the 2025 AutoTech Breakthrough Awards Program

Arbe Robotics Ltd. (Nasdaq: ARBE) (TASE: ARBE), a global leader in perception radar solutions, announced its perception radar has been awarded “Sensor Technology Solution of the Year” in the 2025 AutoTech Breakthrough Awards program conducted by AutoTech Breakthrough, a leading market intelligence organization that recognizes the top companies, technologies and products in the global automotive and transportation technology markets today.

Arbe’s perception radar offers an ultra-high-resolution, cost-effective automotive sensing solution with the highest channel count on the market today (48 transmitting and 48 receiving channels). Arbe’s perception radar complements camera sensing technology for true hands-free, eyes-off driving in all weather and lighting conditions. The solution ensures best-in-class resolution and performance and makes it possible for OEMs to rely on radar technology for critical use cases like highway driving, pedestrians at night, lost cargo, and more. The Perception Radar supports more than 100,000 detections per frame while eliminating false alarms and ambiguities. It offers precise free-space mapping, distinguishing drivable from non-drivable areas for safe manoeuvring. The radar also recognizes the nature and movement of surrounding objects across the entire field of view and processes how the scene will evolve for path planning, emergency braking, and steering. These features are unique to perception radar and enable it to be an optimal complementary sensor to the existing sensor suite, enabling L3 and higher autonomy.

Electreon Achieves a World-First: Providing In-motion Wireless Charging for Electric Vehicles - Including Heavy-duty Trucks - at highway speeds

Electreon (TASE: ELWS), a global leader in wireless electric road technology, announced a historic milestone: the successful launch of the world's first highway that wirelessly charges vehicles in motion. The shared system enables passenger vehicles, vans, buses, and heavy and medium-duty trucks to charge simultaneously, creating a universal model for electric mobility and proving that highways themselves can serve as charging assets in the shift to electric travel.

Led by VINCI Autoroutes, France's largest toll road operator, and backed by Bpifrance, the "Charge As You Drive" project marks a major leap forward for electric vehicles of all sizes. In partnership with Electreon, VINCI Construction, Gustave Eiffel University, and Hutchinson, VINCI Autoroutes helped develop and test an active 1.5-kilometer stretch of highway along the A10 near Paris, where electric trucks, buses, vans, and cars now recharge as they drive—without stopping or plugging in.

Several expert and independent laboratories of Gustave Eiffel University conducted extensive tests on mechanical, thermal, and power transfer performance, confirming average power transfer above 200 kW and peaks over 300 kW—twice the power required by a heavy-duty truck to drive that distance. The system proved safe, durable, and reliable under real highway traffic and at true highway speeds. This milestone positions the company as the first in the world to demonstrate reliable, high-power wireless charging for heavy-duty vehicles traveling at typical highway speeds.

ON, Afcon and Dor-Alon’s charging network in Israel, increases the maximum charging power by 40% in Collaboration with evPower.ai

The ON electric charging network, established by Afcon Electric Transportation and Dor Alon, continues to develop its advanced charging infrastructure and is now introducing new capabilities in the field of charging management. The company recently completed the implementation of an advanced artificial intelligence system from evpower.ai, which enables dynamic management of the distribution of power between charging stations in the various complexes, shortening charging times and precisely adjusting the power required for each vehicle according to the characteristics of the battery.

The company's data indicates an increase of approximately 40% in the maximum power available for charging and an improvement of over 30% in charging quality indicators. In addition, the new technology provides ON with advanced tools for efficient planning of the future network layout, for understanding the behavioural patterns of drivers charging their vehicles, and for accurately forecasting infrastructure needs in the coming years.

The ON network has nearly 2,000 charging points nationwide from Kiryat Shmona to Eilat. evPower.ai is a global pioneer in the development of artificial intelligence-based energy management systems, specifically designed for public fast charging networks. The company's technology allows charging network operators to improve profitability, reliability, and user experience through smart real-time management and transforming charging stations into smart energy assets.

Foretellix’s Foretify Physical AI Toolchain Wins “Autonomous Vehicle Innovation of the Year Award”

Foretellix, a leading enabler of safe autonomous vehicles, won the “Autonomous Vehicle Innovation of the Year Award” for its Foretify Physical AI toolchain in the sixth annual AutoTech Breakthrough Awards program. Foretify accelerates the training, validation, and safety evaluation of autonomous vehicles, making AI safe for the physical world. The awards, conducted by AutoTech Breakthrough, recognize the top companies, technologies, and products transforming the global automotive and transportation technology markets.

The AutoTech Breakthrough Awards celebrate excellence across the rapidly evolving automotive technology landscape, spotlighting companies driving progress in areas such as autonomous driving, electrification, connected vehicles, and AI integration. Foretellix joins a group of leading industry innovators, including BMW, Polestar, Zoox, and Helm.AI, whose solutions are redefining how the world moves safely and intelligently.

Foretify is Foretellix’s Physical AI toolchain that bridges real-world driving data and intelligent simulation to accelerate the safe development of autonomous vehicles. It transforms unstructured data into actionable insights, automatically identifying and prioritizing meaningful and safety-critical scenarios. Developers can then close identified gaps through intelligent scenario generation and targeted simulation, combining real and synthetic data for a measurable, efficient, and scalable validation process.

By focusing on high-value, safety-relevant Physical AI AV data and automating key validation steps, Foretellix helps developers optimize resources while achieving faster and more consistent results. This systematic, scenario-based approach is enabling OEMs and AV developers to shorten development cycles, improve safety outcomes, and accelerate their journey toward large-scale deployment of autonomous systems.

Ituranmob Signs an Agreement with Shlomo Sixt to Install its  System in Shlomo’s Car-Sharing Operation

Ituranmob (a subsidiary of Ituran), a global telematics and smart mobility solutions provider, signed an agreement with Shlomo Sixt to install its system in the Shlomo Share car-sharing operation, which operates a fleet of hundreds of vehicles throughout Israel. The Ituranmob system will allow Shlomo Sixt Share to carry out car rentals with full control and remote monitoring in digital operation from a mobile phone 24/7 without human contact: starting from opening and closing the vehicle, controlling it during the rental, and automatic billing of the customer at the end of the car rental transaction.

Furthermore, the system will allow Shlomo Sixt to carry out car rental transactions, including advanced telematics support in emergency situations, preventive maintenance, and vehicle monitoring during rental. Shlomo Sixt Share customers will rent the car directly from the app 24/7.