Monthly Review June 2022
July 20, 2022
Preface – Economic Climate
The Israeli economy is an advanced economy that belongs to the OECD organization. The GDP per capita is $49,543 and the growth rate in 2021 is estimated by 8.1%. Israel is recovering from the Corona crisis that has affected the Israeli economy significantly since 2020. The deficit in July 2021 – June 2022 is negative -0.4% from the GDP, this is historically lowest deficit since 1987.
The debt-to-GDP ratio is 64.5% The unemployment rate is 3.7% but the unofficial unemployment rate is about 5.1%. The political unease and the coming election will make it difficult to pass a new budget to 2023.
Along with economic stabilization and quick growth, there has been an increase in the inflation rate is 4.4%. the Chief Economist in the Ministry of Finance predicts a similar increase next year as well.
From a monetary point of view, the Bank of Israel is dealing with the rise of the inflation. In June, the interest rate rose to 1.25% due to the rise of inflation and it is expected to rise again.
Population (June 2022): 9.529 Million
GDP per capita: $ 49,543
Inflation (June 2022):4.4% Annual Growth Rate
Current Account Balance (Q1 2022): 3.67% of GDP
Trade in Goods and Services (June 2022): $14.9 billion
US Dollar Exchange rate (June 2022): NIS 3.41
Euro Exchange rate (June 2022): NIS 3.6
Long-term interest rates (June 2022): 2.6% Per Annum
Short-term interest rates (June 2022): 0.36% Per Annum
Debt to GDP ratio: 64.5%
Deficit to GDP (July 2021 to June 2022): -0.4%
Level of Motorization (2021): 406 Vehicles/1,000 Residence
Innovation and Technology
Gross Domestic Spending on R&D (2020): 5.43% of GDP
CO2 Emissions (2018): 6.98 Tonnes Per Capita
Employment Rate (Q1 2022): 69.05% of Working Age Population
Official Unemployment Rate (May 2022): 3.74% of Labour Force
Unofficial Unemployment Rate (including non-paid absence due to Covid-19): 5.1% of Labour Force
New Cars and CV Registrations
New Passenger Car Registration: Jan-June 2022
Passenger car registration: a decrease of 27.9% compared with June 2021; Since January 2022, a decrease of 14.0% compared with Jan-June 2021.
In June 2022, the Israeli passenger car market registered 22,873 new cars. This figure represents a decrease of 27.9% compared with June 2021. Since January 2022, 158,845 new cars were registered – a decrease of 14.0% compared with the first half of 2021.
New Passenger Cars Registration According to Brands: Jan-June 2022
New CV above 3.5 ton Registration: Jan-June 2022
Commercial Vehicles above 3.5 ton registration: -14.6% compared with June 2021. Since the beginning of the year, a decrease of 7.4% in registrations.
In June 2022, the Israeli market for CV above 3.5 ton registered a decrease of 14.6% with 1,312 new registrations, compared with 1,536 units in June 2021. Since January, 8,668 units were registered – a decrease of 7.4% compared with Jan-June 2021.
New CV above 3.5 ton Registration According to Brands: Jan-June 2022
New Bus Registration According to Brands: Jan-June 2022
Israel's Auto and Auto-Tech industry
Colmobil, ICL and EMS to Collaborate in Building a Factory for Lithium Battery Recycling
Colmobil, the largest auto importer in Israel, ICL industrial products, and EMS Logistics signed a memorandum of understanding for collaborating in building the first factory in Israel for Lithium batteries recycling. The factory will provide a full solution – from collection of used batteries to the actual recycling.
City Transformer Raises 10M$ in Series A Round
City Transformer, the e-mobility start-up and developer of the electric micro-car CT-1, raised 10M$ in a series A round led by the Lubinsky group. The investment will help City Transformer ramp up its market release plans for the CT-1, with serial production expected to start in 2024. The company recently won the German Design Council innovation prize for 2022.
EV Motors and GenCell to Begin a Pilot for Installing Hybrid Off-grid Charging Stations in London
EV Motors, importer of JAC electric cars and ANKAI electric buses to Israel, and GenCell, provider of Hydrogen and Ammonia fuel-cell power solutions, will start a pilot for installation of Hybrid Off-grid charging stations for EVs in London. The two companies met with Lord Ian Austin, Representative of the Chamber Trade relations UK-Israel in Netanya and agreed to advance the pilot in collaboration with TFL (Transport for London).
Cars with Internal Combustion Engine Sales Plunge – EV and PHEV Sales Surge
According to the ministry of transportation and Calcalist newspaper, sales of gasoline and diesel cars in Israel plunged by almost 30% in the first half of 2022, while at the same time, sales of EVs and
PHEVs rose. Since January 2022, around 160,000 new cars were sold in Israel – a decrease of 14% compared with H12021. Delivery of Gasoline powered cars dropped 28% and Diesel cars by 29%. At the same time, delivery of EVs increased by 84% and PHEV sales increased by 17%.
Center for Monitoring Transportation Cyber Threats Inaugurated
A center for monitoring transportation cyber threats was inaugurated in adjacent to the airport authority cyber center. The center, that will identify cyber threats and aid in protection against them, is linked to the existing cyber centers of the Israeli railroad and transportation companies. According to the ministry of transportation, over the past 6 months, 32,000 threats against Israeli vehicles were identified, less than half of them required intervention. 30 million NIS were invested in forming the new cyber center.
AI Chipmaker Hailo Collaborates with Renesas to enable seamlessly scaling from ADAS to Automated Driving
Hailo, the Israeli Artificial Intelligence (AI) chipmaker, announced a collaboration with Renesas, a premier supplier of advanced semiconductor solutions, to deliver a powerful and energy-efficient processing solution enabling advanced driver-assistance (ADAS) functions and automated driving (AD) systems in motor vehicles. The joint Hailo-Renesas solution will make sophisticated ADAS technology more accessible in cars of all types. The combination of Hailo-8 processors, designed for heavy Neural Network (NN) acceleration, with the powerful Renesas R-Car V3H & R-Car V4H systems-on-chip (SoCs), powers robust, scalable, efficient, and cost-effective ADAS solutions for zonal and centralized vehicular ECUs.