Passenger Cars - Israel

Israel

Revenue in the Passenger Cars market is projected to reach US$5.9bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 0.25%, resulting in a projected market volume of US$6.0bn by 2028.
The market's largest segment is SUVs with a projected market volume of US$2.0bn in 2024.
Passenger Cars market unit sales are expected to reach 222.10k vehicles in 2028.
The volume weighted average price of Passenger Cars market is expected to amount to US$26.70k in 2024.
With a vehicle unit sales share of 20.2% in 2024, Volkswagen is expected to have one of the highest market share in the selected region.
The value market share of the make Volkswagen in the selected region is expected to stand at 22.9% in 2024.
From an international perspective it is shown that the most revenue will be generated in the United States (US$558bn in 2024).

Key regions: United States, Germany, Europe, China, India

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Analyst Opinion

The Passenger Cars market in Israel has seen significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Israeli consumers have shown a growing preference for passenger cars in recent years. This can be attributed to several factors, including increasing disposable income and a desire for greater mobility and convenience. As the economy has improved, more Israelis are able to afford personal vehicles, leading to a surge in demand for passenger cars. Additionally, the convenience and flexibility offered by passenger cars, compared to public transportation, have made them an attractive option for many consumers.

Trends in the market: One of the key trends in the Israeli passenger cars market is the growing popularity of electric vehicles (EVs). The government has implemented various incentives and subsidies to promote the adoption of EVs, including tax exemptions and reduced import duties. This has led to a significant increase in the number of EVs on Israeli roads, as consumers are increasingly recognizing the environmental and cost-saving benefits of electric vehicles. Another trend in the market is the rise of car-sharing and ride-hailing services. Companies like Gett and Car2Go have gained popularity in Israel, offering consumers a convenient and cost-effective alternative to owning a personal vehicle. This trend is particularly prevalent in urban areas, where parking is limited and traffic congestion is high. As a result, some consumers are opting to forgo car ownership and instead rely on these services for their transportation needs.

Local special circumstances: Israel's relatively small size and dense population have contributed to the growth of the passenger cars market. With limited public transportation options, many Israelis rely on private vehicles for their daily commute and other travel needs. This has created a strong demand for passenger cars, particularly in urban areas where public transportation infrastructure is less developed. Additionally, Israel's unique geopolitical situation has also played a role in shaping the passenger cars market. The country's security concerns and the need for a reliable mode of transportation have further fueled the demand for personal vehicles. Israelis often prefer to travel in their own cars, as it provides them with a sense of security and control.

Underlying macroeconomic factors: The growth of the passenger cars market in Israel can also be attributed to favorable macroeconomic factors. The country has experienced steady economic growth in recent years, with a corresponding increase in disposable income levels. This has allowed more Israelis to afford personal vehicles and contribute to the overall growth of the market. Furthermore, low interest rates and favorable financing options have made it easier for consumers to purchase passenger cars. Many Israeli banks and financial institutions offer competitive loan packages, making car ownership more accessible to a wider range of consumers. In conclusion, the Passenger Cars market in Israel has experienced significant growth due to changing customer preferences, including a preference for electric vehicles and the rise of car-sharing services. Local special circumstances, such as limited public transportation options and security concerns, have also contributed to the growth of the market. Favorable macroeconomic factors, including increasing disposable income and favorable financing options, have further fueled the demand for passenger cars in Israel.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).