Monthly Review September 2023

Foreword

The State of Israel has sadly fallen victim to a reprehensible and traumatic terror act that claimed innocent civilians' lives. Israel is now compelled to engage in warfare as it responds to these unprovoked and barbaric onslaughts.

This conflict will indubitably impact Israel's near-term and long-term trajectory across many areas, including financial stability.

The present analysis remains grounded in data predating September 2023, the month preceding the onset of the war. However, many indices are apt to shift dramatically in forthcoming assessments, as is inherent to the nature of wartime (e.g., inflation, foreign exchange rates, employment).

Despite these challenging times, the I-VIA remains committed to regular, fair monthly updates. We will make every effort to produce accurate, comprehensive analyses given unpredictable conditions.

We empathize with every person in Israel, hoping for a restoration of peace and security that encompasses everyone.

Preface – Economic Climate

The Israeli economy is an advanced economy that participates in the OECD organization. Israel’s GDP per capita is $53,413. The growth rate in Q.2 of 2023 was 3%.

Israel maintains a 1.5% deficit of the GDP from October 2022 to September 2023.

The debt-to-GDP ratio decreased to 60.9% in 2022, and the unemployment rate in August 2023 was 3.1%. As of September 2023, the annual inflation growth rate is 3.82%. In September 2023, the short-term interest rate was raised to 4.6% due to the inflation increase, while the long-term interest rate stands at 3.9% (as of August).
 

Statistical Profile

Society

Population (August 2023): 9.795 Million

Economy

GDP per capita (September 2023): $ 53,413 (NIS 203,877)

Inflation (September 2023) (Annual Growth Rate): 3.82% 

Current Account Balance (June 2023): 4.4% of GDP

Trade in Goods and Services (August 2023): $13.311 billion ( NIS49.8 billion)

Finance

US Dollar Exchange rate (September  2023, Avg.): NIS 3.817

Euro Exchange rate (September 2023, Avg.): NIS 4.072

Long-term interest rates (August 2023): 3.9% Per Annum

Short-term interest rates (September 2023): 4.6% Per Annum

Government

Debt to GDP ratio (2022): 60.9%

Deficit to GDP (October 2022 - September 2023): 1.5% 

Motorization

Level of Motorization (2022): 411 Vehicles/1,000 Residence

Innovation and Technology

Gross Domestic Spending on R&D (2021): 5.57% of GDP

Environment

CO2 Emissions (2022): 8.38 Tonnes Per Capita (BDO Model Estimation)

CO2 Emissions (2021): 6.74 Tonnes Per Capita

Jobs

Employment Rate (August 2023): 63.6% of the Working Age Population

Official Unemployment Rate (August 2023): 3.1% of the Labour Force

New Cars and CV Registrations

 New Passenger Car Registration: Jan-September 2023

Passenger car registration: Increase of 6.5% compared with September 2022.

In September 2023, the Israeli passenger car market registered 18,119 new cars – an increase of 6.5% compared with September 2022. Since the beginning of the year, 240,606 new cars were registered, an increase of 10.3% compared with Jan-Sep 2022. Since January, 41,647 BEVs were registered and 13,902 PHEVs, a total of 55,549 cars with chargeable electric drive representing 23.1% of all registrations.

New Passenger Cars Registration According to Brands: Jan-September 2023

New CV above 3.5-ton Registration: Jan-September 2023

Commercial Vehicles above 3.5-ton registration: -17.8% compared with September 2022.

In September 2023, the Israeli market for CVs above 3.5 tons registered a decrease of 17.8% with 1,092 new registrations, compared with 1,329 units in September 2022. Since January, 12,128 units were registered, a decrease of 7.3% compared with Jan-Sep 2022.

New CV above 3.5-ton Registration According to Brands: Jan-September 2023

New Bus Registration According to Brands: Jan-September 2023

Israel's Auto and Auto-Tech industry

Jared Kushner’s Affinity Partners Acquires Minority Stake in Israeli Shlomo Group

Affinity Partners, a private equity fund led by Jared Kushner, acquired a minority stake in Israeli Shlomo Group for 150M$. The Shlomo group is one of the leading auto companies in Israel; it was established 55 years ago and holds a fleet of 78,000 vehicles. The group imports, sells, leases, and rents cars, operates a credit division, and other related activities. Affinity partners paid 150M$ for a 15% stake according to an equity valuation of 1B$. Saudi Arabia’s public investment fund backs the Miami-based firm. The investment in the Israeli company was made based on the Biden administration's attempts to facilitate diplomatic ties between Saudi Arabia and Israel.

Electreon Enters the Largest EV Market in the World

Electreon (TASE: ELWS), a global wireless charging technology for EVs provider, is entering the Chinese market – the largest EV market in the world. The company signed a memorandum of understanding with the Shandong innovation and entrepreneurship community for international science and technology cooperation, a provincial science and technology innovation arm led by the Shandong Hi-Speed group (SDHS), a state-owned Fortune 500 company.  The agreement paves the way for introducing Electreon's groundbreaking charging technologies in Shandong province, the second largest province in China and the world's center for EV manufacturing. The partnership includes a few phases, the first of which commences in the fourth quarter of 2023 with the debut of Electreon's wireless charging technologies at the Jinan Shandong Hi-Speed Industrial Park. Electreon already has operational projects in Germany, Italy, Sweden, Israel, and the U.S. and has signed deals for additional projects in Germany, France, and Norway in the past year.

ZOOZ Power Debuts its’ First Site in the US

ZOOZ Power (TASE: ZOOZ), the provider of flywheel-based power boosting solutions for the EV charging infrastructure market, announces the successful installation and initiation of a fast-charging station for EVs supported by ZOOZ’s power booster, the ZOOZTER™-100, at a Scotchman gas station and convenience store, in Rock Hill, South Carolina. This fast-charging station was established and will be operated as part of a joint pilot with ARKO Corp., one of the largest convenience store operators in the US, and in cooperation with ABM, a leader in eMobility design, installation, and maintenance solutions. ZOOZ Power intends to use the site in Rock Hill, SC, for demonstrations of a first-of-its-kind charging station in North America, where the Company will be presenting its “green” kinetic Power Booster, the ZOOZTER™-100, geared to enable ultra-fast charging, even in locations where the grid is power-constrained.

Israeli PM Netanyahu Visits Musk, Rides in Cybertruck

Prime Minister Benjamin Netanyahu toured the Tesla Motors plant in Fremont, California, together with Tesla CEO entrepreneur Elon Musk as part of his visit to the US in September. The Prime Minister was briefed by Elon Musk on company developments and various models, observed the production and assembly of Tesla models, and even rode in the Cybertruck vehicle, which has not yet been released to the market.

Skyworth to Open an Auto-Tech R&D Center in Israel

Chinese conglomerate Skyworth, the producer of Skywell cars, intends to inaugurate an auto-tech R&D center in Israel, so said its’ president, Huang Hongsheng, following a visit to Israel at the beginning of September. Hongsheng met with the representatives of the Caduri group, importer of Skywell to Israel, and with the Minister of Energy and the Minister of the Economy. He spoke about the company’s plans and said it intends to open an auto-tech R&D center in Israel soon.

BYD Chairman Visits Israel

Wang Chuanfu, chairman and CEO of the Chinese auto giant BYD visited Israel at the beginning of September, so revealed to Globes daily newspaper. According to Globes, the Chinese CEO came to Israel as a guest of Shlomo Motors, the importer of BYD to Israel. BYD is the leading EV brand in Israel, with more than 13,000 cars sold since the beginning of the year, making Israel the largest export market for the Chinese company, a global leader in EV production and sales. 

General Motors Acquires Battery Software Startup ALGOLiON

General Motors Co. announced that it has acquired substantially all the assets of Israel-based battery software startup ALGOLiON Ltd. for an undisclosed sum. The acquisition was led by the newly formed Technology Acceleration and Commercialization (TAC) organization, a group within GM that works to identify emerging technology that can support GM’s leadership position in battery development through investments, acquisitions, or partnerships. ALGOLiON was founded in 2014 and has 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.