Monthly Review April 2023
May 23, 2023
Preface – Economic Climate
Israel has an advanced economy in the OECD, with a GDP per capita of $55,030. In Q1 2023, the economy grew by 2.5%.
In Israel, per the guidelines set by the World Health Organization (WHO), COVID-19 is no longer a public health emergency, but its impact on the economy persists. Despite these challenges, Israel has managed to maintain a minimal deficit, amounting to only 0.3% of the GDP, from May 2022 to April 2023. This demonstrates the resilience and effective economic management in navigating the difficulties posed by the pandemic.
The debt-to-GDP ratio decreased to 60.9% in 2022, and the unemployment rate in April 2023 was 3.6%.
The new government brings stability and potential, with organized budget transfers and likely approval of the 2023-24 budget in May. However, judicial reform and including religious parties could introduce market instability and fiscal expansion, potentially impacting the primary deficit.
Along with economic stabilization and rapid growth, there has been an increase in the inflation rate. As of April 2023, the annual inflation growth rate is 5%. In April 2023, the short-term interest rate was raised to 4.3% due to the inflation increase, while the long-term interest rate stands at 3.9%.
Population (April 2023): 9.727 Million
GDP per capita (April 2023): $ 55,030 (NIS 197,946)
Inflation (April 2023) (Annual Growth Rate): 5%
Current Account Balance (December 2022): 5.4% of GDP
Trade in Goods and Services (April 2023): $13.943 billion
US Dollar Exchange rate (April 2023, Avg.): NIS 3.6
Euro Exchange rate (April 2023, Avg.): NIS 4
Long-term interest rates (April 2023): 3.9% Per Annum
Short-term interest rates (April 2023): 4.3% Per Annum
Debt to GDP ratio (2022): 60.9%
Deficit to GDP (May 2022 - April 2023): 0.3%
Level of Motorization (2022): 411 Vehicles/1,000 Residence
Innovation and Technology
Gross Domestic Spending on R&D (2021): 5.57% of GDP
CO2 Emissions (2022): 8.38 Tonnes Per Capita (BDO Model Estimation)
CO2 Emissions (2021): 6.74 Tonnes Per Capita
Employment Rate (April 2023): 64.1% of the Working Age Population
Official Unemployment Rate (April 2023): 3.6% of the Labour Force
New Cars and CV Registrations
New Passenger Car Registration: Jan-April 2023
Passenger car registration: Decrease of 4.8% compared with March 2022.
In April 2023, the Israeli passenger car market registered 19,433 new cars – a decrease of 4.8% compared with April 2022. Since the beginning of the year, 125,301 new cars were registered, an increase of 13% compared with Jan-Apr 2023. During the first third of 2023, 19,982 BEVs were registered and 6,967 PHEVs, a total of 26,949 cars with chargeable electric drive representing 21.5% of all registrations.
New Passenger Cars Registration According to Brands: Jan-April 2023
New CV above 3.5-ton Registration: Jan-April 2023
Commercial Vehicles above 3.5-ton registration: -6.4% compared with April 2022.
In April 2022, the Israeli market for CVs above 3.5 tons registered a decrease of 6.4% with 1,072 new registrations, compared with 1,145 units in April 2022. Since January, 5,547 units have been registered, a decrease of 6.4% compared with Jan-Apr 2022.
New CV above 3.5-ton Registration According to Brands: Jan-April 2023
New Bus Registration According to Brands:Jan-April 2023
Israel's Auto and Auto-Tech industry
Gentex Announces Investment and Collaboration Agreement with Adasky
Gentex Corporation (NASDAQ: GNTX), a leading supplier of digital vision, connected car, dimmable glass, and fire protection technologies, announced that it had closed an agreement with ADASKY as the lead investor in a Series B round of financing and has also established a commercial, engineering, and manufacturing collaboration agreement to help bring ADASKY’s proprietary technology to market. The investment round of funding and the collaboration agreement with Gentex will help secure the transition of ADASKY from an early-growth company to a global leader in automotive thermal sensing. ADASKY’s proprietary LWIR (Long Wave Infrared) sensors are becoming well-known in the industry for their market-leading performance based on their superior size-to-performance ratio, solid state technology, high reliability, and “shutterless” constant operation design. As advanced sensing systems create the path for passenger and pedestrian safety, thermal sensing will fill the existing gaps in that technology so that ADAS and vision-based systems can operate more reliably in low light and in all-weather situations.
Electreon Signs Agreement to Develop Wireless Charging Technology with TOYOTA and DENSO
Electreon (TASE: ELWS) has agreed to jointly develop an advanced wireless charging technology built on Electreon’s technology and knowledge with TOYOTA MOTOR CORPORATION (NYSE: TM) and DENSO CORPORATION (TSE: 6902). The agreement follows a successful comprehensive technology evaluation conducted at Electreon’s headquarters in Beit Yanai, Israel, where technical teams from TOYOTA and DENSO participated. A demonstration of a RAV4-PHEV charging on the wireless road was held at the conclusion of the evaluation. The parties intend to promote technical development for the adoption of wireless charging technology through the following joint activities: co-development of an aftermarket wireless kit for current EVs to utilize wireless charging technology today; integration of the wireless technology into new cars released to the market; collaboration to shape the standardization of wireless EV charging; promotion of a joint pilot project in Japan, the U.S. or the EU, including commercial proof of business.
Phinergy Extends Collaboration with TATA Motors
Clean energy company Phinergy, developer of metal-air technology turning aluminum and zinc into a new way to store, transport, and generate clean and safe energy, extends its’ collaboration with TATA Motors. The two companies are already collaborating in developing a passenger vehicle based on Phinergy’s aluminum-air battery technology (TATA Tiago). Phinergy reports that the collaboration will be extended into the LCV segment, and an aluminum-air battery-based engine will be developed for the TATA Ace commercial model launched in India last year. Firstly, the companies will build a prototype of an electric TATA Ace that will receive Phinergy’s system. The building of the prototype will be followed by field tests that will be carried out in Israel and India.
Blink Charging Acquires Electric Car-Sharing Start-Up Envoy for $34 Million
Israeli-founded Envoy Technologies, a software and mobility service developer offering shared electric vehicles as an amenity to real estate developers and owners has been acquired by Blink Mobility, a wholly-owned subsidiary of Blink Charging. Envoy is being valued at $34 million, which will be paid in stock and cash. Envoy developed a car-sharing platform and mobile app that provide on-demand EVs as an amenity to apartments, office buildings, and hotels. Envoy equips real estate owners and operators with a platform that offers technology to reserve and access vehicles, driver insurance, maintenance, electric vehicle chargers, electric fleet, fleet maintenance, full-service mobile app, customer support, and analytics. The company has grown over the past few years, deploying over 300 electric vehicles at more than 150 multifamily properties and office buildings and installing more than 150 EV charging stations. The car-sharing service is offered across the United States, including in Florida, California, Oregon, Washington, New York, and Illinois.
REE Automotive Unveils P7-C Chassis Cab
REE Automotive Ltd. (Nasdaq: REE), an automotive technology company and provider of electric vehicle (EV) platforms, unveiled the new P7-C, a Class 4 chassis cab offering a new cabin design built on REE’s P7 modular electric platform. The P7-C is a Class 4 chassis cab designed to meet the Inflation Reduction Act incentives requirements, which are more substantial for EVs Class 4 and above, and meets market demand for the ability to simplify vocational upfits. P7-C was developed based on direct feedback from ongoing customer evaluations of proof-of-concept vehicles and is designed to meet fleet owners’ specific needs.
The configuration offers a max range of 150 miles, up to 7,000 lbs payload, a gross vehicle weight rating (GVWR) of up to 16,000 lbs, a class-leading 24-inch platform height, and a 39 ft turning circle.
Foretellix Raises $43 Million in Series C First Closing
Foretellix, provider of safety-driven verification and validation solutions for Automated Driving Systems and Advanced Driver Assistance Systems (ADAS), announced it had raised $43 million in the first closing of its Series C funding round led by 83North, bringing its total raised capital to over $93 million. Woven Capital, the growth fund of Toyota, and NVIDIA joined the financing round, along with Artofin VC. All major existing shareholders participated, including MoreTech, Nationwide, Volvo Group VC, and Jump Capital. Foretellix will use the funding to accelerate its product portfolio development and fuel expansion across new geographies. Foretellix’s Safety-Driven Verification & Validation (SDV) Platform – Foretify™, is used by Automotive, Trucking, and Mining customers, including Volvo Group, Torc – a Daimler Truck subsidiary, and others, to accelerate the development and deployment of their Automated Driving Systems.