Monthly Review June 2023
July 24, 2023
Preface – Economic Climate
Israel has an advanced economy in the OECD, with a GDP per capita of $55,161. In Q.1 of 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 economic impact persists. Despite these challenges, Israel has managed to maintain a minimal deficit, amounting to only 0.9% of the GDP, from July 2022 to June 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 June 2023 was 3.6%.
The new government brings potential stability, with a State Budget approved for 2023-24. 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 June 2023, the annual inflation growth rate is 4.2%. In June 2023, the short-term interest rate was raised to 4.6% due to the inflation increase, while the long-term interest rate stands at 3.7%.
Population (May 2023): 9.741 Million
GDP per capita (June 2023): $ 55,161 (NIS 202,573)
Inflation (June 2023) (Annual Growth Rate): 4.2%
Current Account Balance (December 2022): 5.4% of GDP
Trade in Goods and Services (January-June 2023): $65.1 billion
US Dollar Exchange rate (June 2023, Avg.): NIS 3.67
Euro Exchange rate (June 2023, Avg.): NIS 3.96
Long-term interest rates (June 2023): 3.7% Per Annum
Short-term interest rates (June 2023): 4.6% Per Annum
Debt to GDP ratio (2022): 60.9%
Deficit to GDP (July 2022 - June 2023): 0.9%
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 (June 2023): 63.9% of the Working Age Population
Official Unemployment Rate (June 2023): 3.6% of the Labour Force
New Cars and CV Registrations
New Passenger Car Registration: Jan-June 2023
Passenger car registration: Increase of 8.1% compared with June 2022.
In June 2023, the Israeli passenger car market registered 24,732 new cars – an increase of 8.1% compared with June 2022. Since the beginning of the year, 174,336 new cars were registered, an increase of 9.7% compared with Jan-June 2023. Since January, 28,834 BEVs were registered and 9,650 PHEVs, a total of 38,484 cars with chargeable electric drive representing 22.1% of all registrations.
New Passenger Cars Registration According to Brands: Jan-June 2023
New CV above 3.5-ton Registration: Jan-June 2023
Commercial Vehicles above 3.5-ton registration: +4% compared with June 2022.
In June 2022, the Israeli market for CVs above 3.5 tons registered an increase of 4% with 1,365 new registrations, compared with 1,213 units in June 2022. Since January, 8,357 units have been registered, a decrease of 3.6% compared with Jan-June 2022.
New CV above 3.5-ton Registration According to Brands: Jan-June 2023
New Bus Registration According to Brands:Jan-June 2023
Israel's Auto and Auto-Tech industry
General Motors Acquires Battery Software Start-up ALGOLiON
General Motors Co. (NYSE: GM) announced that it has acquired substantially all the assets of Israel-based battery software startup ALGOLiON Ltd. for an undisclosed sum. ALGOLiON, which received early support from the Israeli Innovation Authority, was founded and developed sophisticated software that uses data streams from EV battery management systems to help identify anomalies in cell performance to ensure proper vehicle health management and provide early detection of battery hazards, including thermal runaway propagation events. ALGOLiON’s software, coupled with GM’s internal capabilities and vast experience in delivering best-in-class products at scale, can significantly accelerate the time-to-market of a cost-effective early hazard detection system for the benefit of millions of GM’s customers worldwide.
Carlton Rose Joins REE Automotive Board of Directors
REE Automotive Ltd. (Nasdaq: REE) announced that Carlton Rose, former global president of fleet maintenance and engineering at UPS, has been appointed to the company’s board of directors, effective immediately. “Carlton, who spent 42 years at UPS, is one of the most experienced and respected fleet leaders in the world, bringing invaluable expertise and a wealth of experience to REE,” said Arik Steinberg, chairman of REE. “We will greatly benefit from his management and industry experience as we continue to shape our long-term vision and strategy”. “During my time at UPS, I led the development and deployment of over 16,000 low and zero emission, alternate fuel, and advanced technology vehicles,” said Rose. “REE’s focus on innovation, electrification, and automation provides a compelling foundation to accelerate e-mobility across multiple vehicle classes, use cases, and applications. I believe that better is before us and that REE will become a leader in the commercial EV industry.”
Electreon Wins Tender for Electric Road in Trondheim, Norway
Israeli wireless charging solutions provider Electreon has won a tender in Trondheim (Norway) to implement a wireless Electric Road System (ERS) for charging a bus wirelessly. The route will be managed by AtB AS. The tender was awarded by the Transportation Authority of Trøndelag County, and the project deployment will begin in the summer of 2024. The ambitious long-term vision of AtB is to establish an electric road in the city of Trondheim, making it accessible to all fleets as a shared charging platform for AtB’s buses, e-trucks, and e-taxis. AtB is responsible for planning, purchasing, and developing public transport services to the region and is wholly owned by the Trøndelag County Authority.
By utilizing Electreon’s ERS product to electrify the bus route, it becomes possible to reduce the bus’s battery’s size, increasing the project’s sustainability. Furthermore, the system is designed to charge the buses reliably in any weather or terrain conditions, enhancing the overall efficiency and resilience of the electrification endeavor.
SaverOne and IVECO Plan to Advance Collaboration
SaverOne 2014 Ltd. (NASDAQ: SVRE) (TASE: SVRE), a technology company engaged in transportation safety solutions, announced that IVECO, the commercial vehicle brand of Iveco Group (MI: IVG), and SaverOne, have signed a side letter related to the Memorandum of Understanding (MOU) of October 2022, to document the agreed upcoming plans. The letter also provides IVECO with an exclusivity period of up to six months, during which SaverOne decided not to sell, develop, or manufacture its OEM solution for SaverOne's innovative in-cabin Driver Distraction Prevention Solution (DDPS) with any other truck manufacturer. The initial MOU with IVECO marked the intention of IVECO to integrate SaverOne's technology into their vehicles, aimed at enhancing road safety. The goal of the collaboration is to provide IVECO with a competitive edge by offering a safer driving experience to IVECO's global customer base. It represents a key milestone in SaverOne's international cooperation with a major OEM and in SaverOne's growth trajectory. The parties intend to start the development activities in the fourth quarter of 2023 following entry into an agreement, with the goal of elevating road safety standards in the trucking industry. Based on current estimates, roll out to customers is expected within the 2024 timeframe.
Alternative Energy Car Sales in Israel – H1 2023
During the first six months of 2023, 64,338 BEV, Hybrid, and PHEV vehicles were sold in Israel – 36.9% of all car sales. Twenty-eight thousand eight hundred thirty-four of those were BEVs, 25,854 Hybrids, and 9,650 PHEVs. The percentage of BEVs out of the total amount reached an impressive 16.5%. As a basis for comparison, in 2022, a total of 91,129 alternative energy cars were sold, out of which 27,671 were BEVs.