Monthly Review April 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 $54,889, and its growth rate in Q1 of 2025 was 3.4%.

Israel maintains a 5.1% deficit of the GDP from May 2024 to April 2025.

The debt-to-GDP ratio increased to 69% in 2024, and the unemployment rate was 3.0% in April 2025. As of April 2025, the annual inflation growth rate decreased to 3.6%. In March 2025, the short-term interest rate remained at 4.5%, while the long-term interest rate stood at 1.94% (January 2025).

Statistical Profile

Society

Population (March 2025): 10.054 Million

Economy

GDP per capita (April 2025): $ 54,899

Inflation (April 2025) (Annual Growth Rate): 3.6% 

Current Account Balance (2024): 4.7% of GDP

Trade in Goods and Services (April 2025): $11.477 billion

Finance

US Dollar Exchange rate (April 2025, Avg.): NIS 3.703

Euro Exchange rate (April 2025, Avg.): NIS 4.165

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 (May 2024 - April 2025): 5.1% 

Motorization

Level of Motorization (2024): 421 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 (April 2025): 62.6% of the Working-Age Population

Official Unemployment Rate (April 2025): 3.0% of the Labour Force

New Cars and CV Registrations

 New Passenger Car Registration: January- April 2025

Passenger car registration: an increase of 5.5% compared with April 2024.

In April 2025, the Israeli passenger car market registered 18,749 new cars – an increase of 5.5% compared with April 2024. Since the beginning of the year, 116,658 new cars were registered, an increase of 9.2% in deliveries compared with last year. Since January, 26,250 new cars with electric propulsion (BEV+PHEV) were registered. The market share of pure EVs currently stands at 16.4%.  

New Passenger Cars Registration According to Brands: January- April 2025

New CV above 3.5-ton Registration: January-April 2025

Commercial Vehicles above 3.5 tons registration: +1.3% compared with April 2024.

In April 2025, the Israeli market for CVs above 3.5 tons registered an increase of 1.3% in deliveries with 930 new registrations, compared with 918 units in April 2024. Since January, 5,224 CVs and Buses have been registered, an increase of 6.4% compared with last year.

New CV above 3.5-ton Registration According to Brands: January-April 2025

New Bus Registration According to Brands: Jan-April 2025

Israel's Auto and Auto-Tech industry

Cipia Vision Announced an Efficiency Plan, Including Layoffs

Cipia Vision, the Israeli AutoTech company that developed AI sensing solutions for the automotive industry, announced that it plans to implement an efficiency plan following its’ bleak financial reports and the recent addition of a “Going Concern” notice. The company’s stock has lost more than 90% of its value since the latest capital raise in 2021, and the company’s board decided to implement an efficiency plan, to focus on existing clients and to sharply reduce the operating costs, among other things, by reducing the number of employees by 50%. According to Globes financial newspaper, Cipia currently employs 62 employees.

Ceva AI Technology to Be Used in Nextchip’s ADAS

Ceva, Inc. (NASDAQ: CEVA), a leading licensor of silicon and software IP that enables Smart Edge devices to connect, sense, and infer data more reliably and efficiently, announced that Nextchip has licensed the NeuPro-M Edge AI Neural Processing Unit (NPU) IP for its next-generation advanced driver assistance systems (ADAS) solutions. Nextchip develops ADAS and Image Signal Processors (ISP) solutions for automotive Tier 1s and OEMs to create high-quality viewing cameras that deliver exceptional performance in any lighting condition and weather scenario. The NeuPro-M’s support for Vision Transformers (ViTs) brings superior performance for ADAS vision systems, including object recognition, segmentation, and Free Space detection in complex scenes, such as in cluttered environments (e.g., a pedestrian partially occluded by a parked car). Furthermore, with multiple processing engines, Ceva NeuPro-M enables the processing of multiple video streams and AI models in parallel for higher efficiency and precision.

Chinese HiRain Launches an Imaging RADAR System Based on Arbe Robotics Chipset

HiRain Technologies, a leading provider of intelligent driving systems to the Chinese automotive market, announced the launch of the LRR615, a production-intent long-range imaging radar system powered by the Arbe Robotics (Nasdaq: ARBE) (TASE: ARBE) high-performance chipset. Designed to deliver ultra-high resolution and reliability across all weather and lighting conditions, the LRR615 is now available for OEM evaluation.

The LRR615 is the first radar system in China to feature a high-density waveguide antenna, enhancing image clarity, increasing sensitivity, and significantly improving signal integrity. With its ability to detect at long ranges and maintain high resolution in challenging environments while minimizing false alarms, the system presents a cost-effective and scalable imaging sensor that complements cameras and offers an alternative to LiDAR. The radar system is tailored for the growing demands of the Chinese autonomous driving market, delivering 10x detection capabilities compared to current radars on the market.

Electreon Signs a Framework Agreement with Hyundai America Technical Center, INC. to Install Its Wireless Charging Systems

Electreon Wireless announced to the TASE that it had signed a framework agreement with Hyundai America Technical Center, INC. to mutually collaborate on developing and demonstrating Electreon’s wireless charging systems on Hyundai and Kia models. The collaboration will include several separate project plans, the first of which will be the installation of a wireless charging system for a KIA EV9 model. Following the initial collaboration, Electreon hopes to integrate its systems in Hyundai and Kia models on a large scale.