• news

• News in Israel

• Events in Israel

Despite the corona crisis: an increase in vehicle sales compared to last year

August, which in normal years is considered relatively weak due to the large number of vacationers abroad, recorded more than 21,000 car sales. This, after months with a decrease of tens of percent. The industry is still 18.2% from last year, but the car market remains optimistic: "Increase in private customer power"

Tags

• Cars

• Hyundai

• Toyota

• Car market

• Kia

• Corona virus

• vehicle

Keenan Cohen

Saturday, 05 September 2020, 21:07

• Share on Facebook

• Share on WhatsApp

• Share in general

• Share in general

• Share on Twitter

• Share on Email

0 comments

Buy a car instead of flying for the annual vacation.

Showroom (Photo: Ronen Topelberg)

While the Israeli economy is still having a hard time pointing to an optimistic future, in one industry it seems that the Corona shake is having a hard time touching - the new car market.

The car market ended August with 21,647 vehicles sold, joining a total of 167,465 vehicles since the beginning of the year.

Although this is a few hundred cars less than in July, the more interesting figure is compared to August 2019, in relation to which there was an increase of 4.2%.

However, overall, the car market is still 18.2% below sales in 2019.

August, which in normal years is considered relatively weak due to the large number of customers who spend it on vacation abroad or on trips, marks a third consecutive month of stability with more than 21,000 new vehicles delivered. By tens of percent.

More on Walla!

NEWS

• Dedication to vigor: The corona is reaching the market

• July Dedication: Declined 10 Percent, Private Market Strengthens

• Due to the growing demand for effective treatment of pain, without side effects: B-Cure laser in a special operation

There has been concern about Corona being infected by public transport.

Vehicles in the port of Eilat (Photo: Kobi Liani)

The industry continues to point to several key factors driving the sales of new vehicles.

It is a combination of credit that banks still generously distribute with attractive interest rates, the so-called "cheap money".

Another factor is the money that was "released" for customers who gave up a family trip abroad this year and preferred to spend it on upgrading the new car.

Other factors are the movement of customers who previously received a car from work to a private maintenance route. At the same time, there is a demand in the used market, mainly for relatively cheap vehicles as a substitute for public transportation due to the fear of getting infected in Corona.

The car rental industry has been almost completely wiped out (Photo: Kobi Liani)

When you dive into the data, there are additional insights that emerge from the dry numbers.

Amir Weinstock, founder of the carzone website for comparing the prices of new vehicles, points to a decrease in the average discount price offered by importers.

If in the previous month the average discounts on the market were NIS 11,800, last month they were NIS 1,000 lower on average.

In contrast, more models were included in the discounts - 82 compared to 59 in the previous month.

The division into the sectors that purchase the cars also continues to indicate a significant change that the local car market is undergoing.

"From a market that has been biased towards leasing for years, we are seeing an increase in the power of the private customer," Weinstock said, and the numbers do confirm that.

53.4% ​​of vehicles are sold to private customers (an increase of 2% from last month), while leasing companies, which are recovering, hold 26% and 18.5% are registered as "company vehicles".

The rental industry, which was almost completely wiped out with 1.6% and the taxis with 0.1%, illustrates the difficult period in the industry.

More on Walla!

NEWS

From a small office in Or Yehuda, you will exit the line of Israel's smart roads

To the full article

The leading brands and models

Hyundai leads the monthly sales volume with 3,223 units in August, quite a few of which are the i20 model supplied to the Ministry of Defense as part of the procurement tender that the company won.

It is followed by Kia with 2,606 vehicles, with the small Picanto accounting for about half of sales last month (and the best-selling car in Israel in August).

Toyota is in third place with 2,199 units, with the Corolla continuing to be its main model - and it is also the best-selling vehicle so far this year.

Accounts for about half of sales in the past month.

Kia Picanto (Photo: Ronen Topelberg)

The car market allows themselves to maintain cautious optimism in light of recent months, which indicate healthy stability in the market.

Although the year is expected to end in decline, it is less difficult than expected by blacks.

Another bright spot - more for importers and less for consumers - is the green taxation formula that is expected to take effect in early 2021. The

paradox is that under the new taxation, hybrid cars, which have gained real volume in sales in recent years, are becoming significantly more expensive.

Won the Ministry of Defense tender.

Hyundai i20 (Photo: Kobi Liani)

The Treasury does not seem to like these tax benefits, which will lead to a decrease in fuel consumption and a net profit for citizens and the environment.

As in the past, it is expected that the first result of the change in the formula will be expressed in the advance of orders of hybrid cars in order to pay the reduced tax on them before they become artificially expensive.

These may slightly balance the 2020 sales numbers.

• Share on Facebook

• Share on WhatsApp

• Share in general

• Share in general

• Share on Twitter

• Share on Email

0 comments