Trends Analysis of the Israeli market for new vehicles - Q1 2026

Israel Vehicle Importers Association (I-Via) publishes this quarterly overview to offer a comprehensive analysis of the Israeli market for new vehicles, highlighting relevant trends observed over the years. It should be noted that the data presented in this document pertains to passenger cars and light commercial vehicles weighing up to 3.5 tons, falling within the N1+M1 categories (as classified by the EU), and imported solely by direct importers.

Hezi Shayb PhD in collaboration with Carzone Technologies Ltd.
May 4, 2026

Registration Data

Registration by Engine Type

Q1 2026 reflects ongoing changes in the distribution of powertrain types in Israel, with noticeable shifts across both petrol and electrified vehicles.

Petrol-powered vehicles accounted for 29.0% of total registrations in Q1 2026, down from 36.4% in Q4 2025 and below 40.0% in Q1 2025 and 48.0% in Q1 2024. The data indicate a continued decline in petrol’s share over time.

Hybrid vehicles reached 32.0% of new registrations, up from 26.2% in Q4 2025 and slightly above 30.0% in Q2025 , as well as significantly higher than 16.0% in Q1 2024.

Plug-in hybrid vehicles (PHEVs) accounted for 22.0%, up from 11.5% in Q4 2025 and 10.0% in Q1 2025, and markedly higher than 4.0% in Q1 2024. The segment shows a notable increase in share compared to previous periods.
Battery electric vehicles (BEVs) represented 11.0% of registrations in Q1 2026, down from 19.8% in Q4 2025 and 20.0% in Q1 2025, and below 25.0% in Q1 2024. The segment accounts for a lower share compared to earlier periods.

Registration by Segment Type

Q1 2026 reflects a continued concentration of the Israeli passenger car market around Crossover and SUV models, alongside lower shares for traditional passenger car segments.

Crossover/SUV models accounted for 77.1% of total registrations in Q1 2026, up from 72.4% in Q4 2025 and above 68.9% in Q1 2025 and 62.9% in Q1 2024. The segment continues to represent the largest share of the market.

Sedan vehicles represented 5.9% of new registrations, down from 9.2% in the previous quarter and below 11.3% in Q1 2025 and 13.1% in Q1 2024. The segment maintains a relatively limited share compared to earlier periods.

Hatchbacks accounted for 11.5% of the market in Q1 2026, slightly below 12.0% in Q4 2025 and 13.1% in Q1 2025, and lower than 17.8% in Q1 2024. The segment remains present in the market with a lower share than in previous years.

Registration by Category

Q1 2026 shows a continued emphasis on SUV categories, alongside shifts in the distribution between different segments.

SUV-C vehicles accounted for 33.7% of total registrations in Q1 2026, down from 41.1% in Q4 2025 and 41.0% in Q1 2025, and below 38.0% in Q1 2024. The category continues to represent the largest share of the market.

SUV-B models reached 17.5%, up from 16.0% in Q4 2025 and above 15.3% in Q1 2025 and 12.9% in Q1 2024. The category maintains a significant share within the market.

SUV-D vehicles accounted for 16.5% of registrations, a sharp increase compared to 4.7% in Q4 2025 and 3.2% in Q1 2025, and higher than 3.3% in Q1 2024. The category shows a notable increase compared to previous periods.

Registration by Country of Origin

Q1 2026 indicates additional changes in the distribution of new vehicle registrations by country of origin, with China maintaining the largest share.

China accounted for 41.9% of total registrations in Q1 2026, up from 34.9% in Q4 2025 and significantly higher than 25.8% in Q1 2025 and 23.1% in Q1 2024.The share continues to increase compared to previous periods.

Europe represented 24.8% of new registrations, down from 29.0% in Q4 2025 and below 32.8% in Q1 2025, while also lower than 29.3% in Q1 2024. The share is lower compared to earlier periods.

South Korea accounted for 19.0% of registrations, slightly above 18.3% in Q4 2025 but below 20.1% in Q1 2025, and broadly in line with 18.2% in Q1 2024. The share remains within a relatively stable range.

Japan reached 11.3% of new registrations, down from 14.1% in Q4 2025 and below 15.9% in Q1 2025 and 14.2% in Q1 2024. The share is lower compared to recent periods.