Monthly Review March 2025
April 27, 2025
Preface – Economic Climate
The Israeli economy continues to face significant challenges due to the complex security situation and global market conditions. Economic indicators reflect mixed trends: on the one hand, low unemployment and relatively moderate inflation indicate economic resilience; on the other, the high deficit and rising debt-to-GDP ratio underscore the need for cautious fiscal management. The forecast for moderate growth in 2024 emphasizes the importance of growth-supporting policy measures.
The Israeli economy is advanced and participates in the OECD organization. Its current GDP per capita is $53,489, and its growth rate in Q4 of 2024 was 2.5%.
Israel maintains a 5.2% deficit of the GDP from April 2024 to March 2025.
The debt-to-GDP ratio increased to 69% in 2024, and the unemployment rate was 2.9% in March 2025. As of March 2025, the annual inflation growth rate decreased to 3.3%. In March 2025, the short-term interest rate remained at 4.5%, while the long-term interest rate stood at 1.94% (January 2024).
Statistical Profile
Society
Population (February 2025): 10.045 Million
Economy
GDP per capita (March 2025): $ 53,489
Inflation (March 2025) (Annual Growth Rate): 3.3%
Current Account Balance (2024): 4.7% of GDP
Trade in Goods and Services (March 2025): $13.74 billion
Finance
US Dollar Exchange rate (March 2025, Avg.): NIS 3.659
Euro Exchange rate (March 2025, Avg.): NIS 3.952
Long-term interest rates (January 2025): 1.94% Per Annum
Short-term interest rates (March 2025): 4.5% Per Annum
Government
Debt to GDP ratio (2024): 69%
Deficit to GDP (April 2024 - March 2025): 5.2%
Motorization
Level of Motorization (2023): 417 Vehicles/1,000 Residence
Innovation and Technology
Gross Domestic Spending on R&D (2023): 6.3% of GDP
Environment
CO2 Emissions (2023): 6.7 Tonnes Per Capita
Jobs
Employment Rate (March 2025): 62.6% of the Working-Age Population
Official Unemployment Rate (March 2025): 2.9% of the Labour Force
New Cars and CV Registrations
New Passenger Car Registration: January- March 2025
Passenger car registration: an increase of 4.4% compared with March 2024.
In March 2025, the Israeli passenger car market registered 26,685 new cars – an increase of 4.4% compared with March 2024. Since the beginning of the year, 97,909 new cars were registered, an increase of 10.0% in deliveries compared with last year. Since January, 21,209 new cars with electric propulsion (BEV+PHEV) were registered. The market share of pure EVs currently stands at 16.2%.
New Passenger Cars Registration According to Brands: January- March 2025
New CV above 3.5-ton Registration: January-March 2025
Commercial Vehicles above 3.5 tons registration: -2.3% compared with March 2024.
In March 2025, the Israeli market for CVs above 3.5 tons registered a decrease of 2.3% in deliveries with 1,271 new registrations, compared with 1,301 units in March 2024. Since January, 4,294 CVs and Buses have been registered, an increase of 7.5% compared with last year.
New CV above 3.5-ton Registration According to Brands: January-March 2025
New Bus Registration According to Brands: Jan-March 2025
Israel's Auto and Auto-Tech industry
Blender Signs a Strategic an MOU with a US Financial Institution to Provide a Platform for Autoloans in the American Market
Israeli FinTech company Blender announced that it had signed a Memorandum of Understanding with a US financial institution to provide a technological platform for vehicle dealerships and auto loans in the US market. According to the agreement, Blender will provide the American partner with technological development services, support, and knowledge retention for a dedicated company to be formed in the US.
For Blender, it is the first strategic partnership in the US with a major American financial institution. According to the agreement, Blender will provide the American partner with technological development services, support, and knowledge retention. The Israeli firm will also manage the technological aspects of the new platform. The deal includes a one-time payment and a revenue-sharing agreement based on a tiered model. Blender has also been granted an option to convert its share of the revenue into equity, up to 44% ownership of the new company within five years.
VW Group to Collaborate with Mobileye and Valeo to Enhance Driver Assistance in Future MQB Models
Volkswagen Group is working with Valeo and Mobileye to upgrade the advanced driver assistance systems up to Level 2+ ("enhanced partially automated driving") in its upcoming vehicle portfolio based on the MQB platform. Launching in the next few years, this cooperation will improve safety and driving comfort in high-volume vehicles, addressing both customer expectations and regulatory requirements.
Beyond hands-free driving in specific conditions on approved highway sections, the system will offer features like traffic jam assist, hazard detection, parking assist, driver monitoring, and 360-degree emergency assist, with future-ready capabilities such as augmented reality displays.
With this collaboration and streamlined procurement across multiple brands, Volkswagen Group is advancing vehicle safety and automation while ensuring efficient development and cost-effective solutions for its customers.
The new system features a 360-degree ring of multiple cameras and radars, along with software-defined capabilities, enabling hands-free driving on approved roads, smart parking, and improved occupant and pedestrian safety.
Valeo provides high-performance ECUs, sensors, and parking solutions, while Mobileye contributes its Surround ADAS™ platform, including the EyeQ™6 High processor and mapping technologies. For the first time, these elements are integrated into a single system, replacing multiple ECUs with a centralized unit. This improves efficiency and system performance and allows for over-the-air updates to meet evolving safety standards.
VW Returns to its Contract with Apollo Power
Apollo Power, developer of flexible energy films, signed a contract in May 2022 for a large-scale project that will integrate the company’s products in VW models. In September, VW informed Apollo Power that it would halt the project for internal examination. Now, VW announces that it intends to renew the collaboration, although the specifications of the products supplied by Apollo and their specific uses may vary from those specified in the original contract.
Trump’s New Tariffs May Affect Israeli Auto Part Exports to the US
President Trump’s new tariff plan is rattling the global economy. The US president’s decision to impose tariffs on cars and auto parts imported into the US is threatening to disrupt the global auto trade and supply chains, and Israel will most likely be affected as well. Trump’s new 25% tariff includes a wide range of auto parts, such as tires, batteries, shock absorbers, and more, and Israeli companies exporting to the US are expected to “take a hit” as well. Last year, Israel exported to the US 34$ million worth of auto parts and components. Trump’s actions may bring this figure down substantially in the year to come.
Carasso Motors is Holding Negotiations to Acquire Stake in Sonol EVI Charging Company
Carasso Motors (Freesby) informed the Israeli TASE that it is holding negotiations to acquire Meshek Energy’s share in the EV charging company Sonol EVI. This move represents Carasso’s ambition to expand its activity in the EV charging market after purchasing the controlling shares in GNRGY, another EV charging company, last July. If the transaction materializes, Carasso will have access to Sonol’s fueling stations, and it may also merge the activity of GNRGY and Sonol EVI.