Monthly Review November 2022

Preface – Economic Climate

The Israeli economy is an advanced economy that belongs to the OECD organization. The GDP per capita is $51,425, and the growth rate in 2022 is estimated at 6.3%.

Israel is recovering from the Covid-19 crisis that has affected the Israeli economy significantly since 2020. The deficit in December 2021 – November 2022 is negative -0.4% of the GDP. The debt-to-GDP ratio is 60%. The unemployment rate is 4.1%.

At this phase, it is difficult to say how the election results will affect the Israeli economy. On the one hand, the stability that the new government will bring with it entails a promise of stability that will allow an orderly transfer of the budget for the coming years; on the other hand, the entry of the religious parties into the coalition may create pressure for a significant fiscal expansion which may increase the basic deficit and delay necessary reforms in the labor market.

Along with economic stabilization and rapid growth, there has been an increase in the inflation rate; as of November, the annual rate is 5.3%. The Chief Economist in the Ministry of Finance predicts that in 2023 the inflation rate will be 2.7%.

From a monetary point of view, the Bank of Israel is dealing with the rise of inflation. In November, the interest rate was raised to 3.25% due to the increase in inflation.

Statistical Profile

Society

Population (October 2022): 9.619 Million

Economy

GDP per capita: $51,425

Inflation (October 2022): 5.3% Annual Growth Rate

Current Account Balance (Q3 2022): 3.51% of GDP

Trade in Goods and Services (November 2022): $ 13.590 billion

Finance

US Dollar Exchange rate (November 2022): NIS 3.48

Euro Exchange rate (November 2022): NIS 3.55

Long-term interest rates (November 2022): 3.27% Per Annum

Short-term interest rates (October 2022): 3.22% Per Annum

Government

Debt to GDP ratio: 60%

Deficit to GDP (December 2021 to November 2022): -0.4%

Motorization

Level of Motorization (2021): 406 Vehicles/1,000 Residence

Innovation and Technology

Gross Domestic Spending on R&D (2020): 5.43% of GDP

Environment

CO2 Emissions (2018): 6.98 Tonnes Per Capita

Jobs

Employment Rate (Q3 2022): 69.51% of Working Age Population

Official Unemployment Rate (October 2022): 4.06% of the Labour Force

New Cars and CV Registrations

 New Passenger Car Registration: Jan-November 2022

Passenger car registration: an increase of 42.1% compared with November 2021; Since January 2022, a decrease of 9.8% compared to Jan-November 2021.

In November 2022, the Israeli passenger car market registered 22,004 new cars. This figure represents an increase of 42.1% compared with November 2021. Since January 2022, 256,703 new vehicles have been registered – a decrease of 9.8% compared with Jan-Nov 2021.

New Passenger Cars Registration According to Brands: Jan-November 2022

New CV above 3.5-ton Registration: Jan-November 2022

Commercial Vehicles above 3.5-ton registration: +16.9% compared with November 2021. Since the beginning of the year, a decrease of 4.4% in registrations.

In November 2022, the Israeli market for CV above 3.5 tons registered an increase of 16.9% with 1,321 new registrations, compared with 1,130 units in November 2021. Since January, 15,279 units have been registered – a decrease of 4.4% compared with Jan-Nov 2021.

New CV above 3.5-ton Registration According to Brands: Jan-November 2022

New Bus Registration According to Brands:Jan-November 2022

Israel's Auto and Auto-Tech industry

Nvidia Establishes Autonomous Driving R&D Operations in Israel

Computer graphics and visualization giant Nvidia begins autonomous driving R&D research in Israel. The company established two new engineering units in order to develop software and hardware solutions for its autonomous driving program. Nvidia drive solutions are already being used by leading auto manufacturers such as Volvo, NIO, and Mercedes-Benz. Much of the research in the new units will be based on Nvidia's 2020 purchase of Israeli Mellanox, a producer of high-speed servers and storage switching solutions.

Self-Driving Public Buses Pilot to Begin in Israel – 4 Groups Chosen for the Pilot

The Israeli innovation authority, along with the Transportation Ministry and Ayalon Highways, is launching a 2-year pilot programme in which self-driving buses will operate on public roads. 4 groups were chosen for the pilot: Egged, Metropolitan, Dan-Via and Nativ Express. In phase one, companies will carry out pilots on self-driving buses in a closed area and in operational areas, with the aim of proving technological, regulatory, safety and business feasibility. In the second stage (2024), they will operate an autonomous bus lines on public roads, at a range that will increase throughout the two-year pilot period. The state is providing half of an investment of 61 million shekels ($17 million) for the pilot with the goal of examining the viability of integrating autonomous vehicles into Israel's public transport system.

Porsche Digital to Intensify its Presence and Activities in Tel-Aviv

Porsche Digital GmbH is intensifying its presence in Tel Aviv in cooperation with Porsche Ventures - the focus is on the topic of cybersecurity. The company is expanding its investment activities to include a focus on cybersecurity, and it also intends to further expand its team in Israel with several highly qualified experts. Porsche Digital is the digital unit of the Stuttgart-based sports car manufacturer. It has been involved in Israel since 2018 in an effort to identify new digital business models and invest in technology startups. Valence Security is the sixth Israeli startup in which Porsche Ventures has invested directly. Porsche also acquired a minority stake in the Israeli company TriEye in 2019, for example.  
"Porsche Digital is a strong partner for startups worldwide. In Tel Aviv, we have been working successfully with various players for several years and will continue to expand our portfolio in the future", said Mattias Ulbrich, CEO of Porsche Digital GmbH.

Arbe Robotics Announces First Mass Quantity Commercial Preliminary Order from HiRain Technologies

Arbe Robotics Ltd., a leader in perception radar solutions, announced that HiRain Technologies, the leading Chinese advanced driver-assistance system (ADAS) tier-1 supplier, placed its first mass quantity retail preliminary order for 2023 and 2024, moving Arbe into the mass production phase. The order consists of 340,000 radar chipsets that will be supplied to HiRain’s customers throughout China. HiRain has previously stated that it will engage in major OEM and autonomous driving projects with the radar solution it developed using Arbe's Perception Radar Chipset and announced that it expects to reach total mass production of its radar systems in 2023.

Redler Technologies Signs MOU with Indian SSWL to Establish JV in India

Redler Technologies, the provider of motion control and power distribution solutions, signed a memorandum of understanding with Indian SSWL, the world's leading automotive wheels manufacturer. According to the MOU, the two companies will establish a joint venture in India to develop, manufacture, and market innovative, cutting-edge motion control solutions for 2, 3, and 4-wheeled EVs. 

Pointer and Enigmatos to Collaborate in Automotive Cyber Monitoring

Pointer by Powerfleet, a producer of vehicle tracking and recovery systems, and Enigmatos, a provider of automotive cybersecurity solutions, announced that they would collaborate in order to advance cyber vehicle protection. The two companies will present an integrated and unified solution that will enable commercial fleets, government agencies, car importers, vehicle manufacturers, and owners to access real-time detection of hacker attempts. In case of a cyberattack, a real-time alert will be sent to the fleet manager or car owner, followed by Pointers' security operation center. The technology is embedded in Pointer's in-vehicle CAN-bus products, enabling real-time monitoring.