Trends Analysis of the Israeli market for new vehicles - Q2 2025

Registration Data

Registration by Engine Type

Petrol vehicles accounted for 40.7% of new registrations, remaining almost unchanged compared to Q1 2025 (40.0%), but showing a sharp decline compared to both Q2 2024 (47.0%) and Q2 2023 (54.9%).

Electric vehicles (EVs), comprised 16.4% of new registrations. This is a decrease from both the previous quarter (20.0%) and Q2 2024 (25.0%), but is consistent with the level seen in Q2 2023 (16.5%), highlighting stabilization after a period of rapid growth.

Hybrid vehicles reached a market share of 27.2%, a decrease compared to the previous quarter (30.0%), but significantly higher than in Q2 2024 (18.0%) and Q2 2023 (14.8%). This demonstrates the growing preference for electrified powertrains among Israeli consumers over the past year.

PHEVs rose to a market share of 9.0% in Q2 2025, slightly down from Q1 2025 (10.0%), but up compared to Q2 2024 (3.0%) and Q2 2023 (5.5%). This segment continues to benefit from consumers seeking flexibility between electric and conventional driving.

Registration by Segment Type

Crossover/SUV vehicles accounted for 70.6% of new registrations in Q2 2025, marking another increase from both the previous quarter (68.9%) and the same period last year (63.7%). Compared to Q2 2023 (65.6%), the segment has added five percentage points in market share over the past two years, underlining the ongoing consumer preference for this body type.

Sedan represented 10.2% of new registrations this quarter, a slight decrease from Q1 2025 (11.3%) and a significant drop compared to Q2 2024 (14.4%) and Q2 2023 (12.0%). The sedan segment continues its gradual decline as consumers shift towards other formats.

Hatchbacks captured 12.4% of the market in Q2 2025, down from 13.1% in the previous quarter and 15.1% a year earlier. The segment has also declined compared to Q2 2023 (16.9%), reflecting a broader shift away from traditional passenger car formats.

Registration by Category

The SUV-C models remained the clear market leaders, accounting for 42.8% of new registrations. This marks an increase from both the previous quarter (41.0%) and Q2 2024 (37.4%), and is substantially higher than their share in Q2 2023 (35.8%). The sustained growth of the C-segment SUV category demonstrates its ongoing appeal to a broad range of buyers.

SUV-B vehicles held second place with a market share of 14.5%. While slightly down from Q1 2025 (15.3%) and close to the level seen in Q2 2024 (14.4%), this segment continues to attract buyers looking for a compact and versatile SUV format. The segment has declined from 16.8% in Q2 2023, reflecting increased competition from larger SUV models.

Car-C registrations accounted for 9.1% of the market, nearly unchanged from Q1 2025 (10.2%), but sharply down from Q2 2024 (15.1%) and Q2 2023 (9.0%). This underlines the shift away from traditional compact cars towards crossover and SUV body types.

Registration by Country of Origin

Chinese-made vehicles reached a record 28.7% share of the market this quarter, up from 25.8% in Q1 2025, 22.5% in Q2 2024, and 17.0% in Q2 2023.

European-made vehicles accounted for 31.2% of new registrations in Q2 2025, a slight decrease compared to Q1 2025 (32.8%) and Q2 2024 (31.1%), and down from 32.5% in Q2 2023. Despite the decline, European brands maintain a leading position, though the gap versus Chinese models is narrowing.

South Korean vehicles represented 19.5% of registrations, down slightly from 20.1% in the previous quarter but broadly stable compared to Q2 2024 (17.8%) and Q2 2023 (20.0%). Korean manufacturers continue to hold a significant and steady share of the Israeli market.

Japanese vehicles maintained a stable presence, with a 15.9% market share in both Q2 2025 and Q1 2025. This is slightly higher than in Q2 2024 (15.0%) and notably up from Q2 2023 (13.1%).