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2022: The average price for a new car has jumped to NIS 202,000 - voila! vehicle


In the past year, the Israeli car market shrank, but the price of new cars continued to climb. And also: how many Chinese cars are there in Israel and will the tax on streetcars change everything?

Selling less, but prices are rising (Photo: Kobi Liani)

Did the data on car prices in Israel last year get you into the market?

Wait until you hear what happened to the average price of a new car in Israel in 2022. But just before that - a reminder.

In 2019, the average price of a new car in Israel was about NIS 163,000. In 2020, which was by all accounts challenging, the leasing sales channels went into hysterical emergency braking, and together with them, the discounts and models for vehicle fleets were reduced and the private customer moved to center stage - and the private customer is sold at a high price, so the amount increased to approx. -174 thousand shekels.

The shock waves of the Corona virus, difficulties in supply, production and the overall increase in price due to the entry of Mars into the horizon and Venus (a realistic excuse like all the others) raised the average price in 2021 even higher to about 187 thousand shekels, 186,890 to be exact.

And if then we thought we had reached a peak, it was only to prepare us for the new peak - because we end the year 2022 with the first crossing of the NIS 200,000 mark at the average price for a new car in Israel - NIS 202,314.

This is according to an inspection of Walla! Car and the "Carzon" website

Production costs are rising due to the energy crisis in Europe (Photo: Keinan Cohen)

The jump in the prices of new cars does not happen in a record sales year, but rather in a year that records an 8.3% decrease in the number of new car deliveries.

A year in which we dropped from 301,460 vehicles to 276,567 units.

In other words, Israelis bought fewer cars, but paid much more money for them.

A situation that also explains the concept to which car manufacturers are increasingly addicted - reduced production and larger profit margins on each car.

For most car manufacturers, the first three quarters of 2022 amounted to very good profitability (financial results for the whole year have not yet been published).

So how does such a thing actually happen?

Well there are two processes here.

The first is natural and understandable in a period of uncertainty and with increased demand, car manufacturers seek to produce as many "fat storage" processes as possible for any eventuality.

The second reason - all of them are now at one stage or another of massive investments in the development of electric vehicles and procurement of necessary components for their production.

The bottom line is the same, the electric cars are more expensive to manufacture and more expensive in the showroom, the gasoline cars incur fines on the manufacturers and have to "subsidize" the development costs of the electric cars - the bottom line, everything costs more.

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Everyone is running for electricity, and the business is getting more expensive (Photo: Keinan Cohen)

By the way, even in the smaller local circuit - the electrical change has a significant part in the average price increase.

In 2021 the share of electric cars was 3.7% of the total market (this was also a very nice increase compared to the previous years) in 2022 their share ended at 10.1 - every tenth car that hit the road was electric.

The increase in the rate of plug-in cars was more moderate, they went from 4.5% to 5.7%, but since electric cars and plug-in cars are more expensive - the average price climbs along with them.

And if at the beginning of its journey a car like the Geely Geometric C, the poster girl of electric success, cost NIS 133,900, a local sensation.

Today the price of the basic version is NIS 148,000, the equipped version NIS 152,000 and the version with the longer range NIS 165,000.

Another "popular" tram - BYD Auto 3 which arrived in Israel only last September and cost then starting at NIS 156,500 will cost NIS 163,500 today.

And of course Tesla which continues to raise the prices of its cars, in the last beat it was the Model 3 which now starts at NIS 242 thousand (an increase of NIS 17 thousand from the previous beat).

The Y model became more expensive from 331 to 360 thousand shekels.

Hyundai Ioniq, which started its journey here at NIS 189,900, also starts today at NIS 213,000.

Geely Geometric C from NIS 133,900 to NIS 148,000 (Photo: Keinan Cohen)

Unlike the other importers, Tesla is transparent about the taxation component of its cars, which illustrates its share in the increase in the price of the purchase tax for electric cars from 10 to 20 percent and the lowering of the discount ceiling from 75 to 65 thousand shekels.

Changes like these, and like last year the continued reduction of the discount for plug-in cars and earlier the cancellation of the benefit for hybrid cars altogether - all lead to an increase in the price of new cars in Israel, how much of this increase is really due to the tax increase and how much of it is the importers riding?

The private customer has no way of knowing, but that doesn't stop him from taking out the credit.

Another effect on the price was the Israeli slurs on two more vehicle groups that are completely emotional in their purchase - everything classified as "Jeep", "leisure" or "crossover" and the luxury segment - of the former, 140,475 units were sold this year compared to 130,000 last year (increase from 45 to 53% of the market share) and in the luxury category there was a measured increase from 32 to 33,558 units (from 11 to 13%) - a measured increase but in these amounts, the significance is greater than the 1,500 units themselves.

Almost 100 units are already here in 2022 - even in terms of luxury, Israelis are no longer afraid of a MADE IN CHINA vehicle (Photo: Keinan Cohen)

On origin, attribution and relation

If anyone had any doubts about the determination and speed with which the Chinese manufacturers are taking over the local car market, here is another analysis that we bring here for the first time and it concerns the country of manufacture of your cars, which clarifies this point.

First of all the numbers.

25,049 cars arrived in Israel from China in 2022, compared to 9,157 cars in 2021.

She and Thailand are the only ones among the top ten that increased the number of cars imported from them and the only ones that recorded an improvement.

By the way, in the case of Thailand it is a modest increase that also stems from the surprising success of Mazda2.

What is happening in the other countries?

In 2022, 60,986 cars arrived in Israel from Korea, that is 22% of the total 276,567 cars sold here.

However Kia and Hyundai, the two leading South Korean manufacturers sold 83,679 units here (and another 660 from Genesis and Ssangyong) which is 30% of the new cars sold here.

What about Japan?

An even more extreme situation 39,109 cars which are 14.1% of the total market while the share of the Japanese manufacturers of the total market is 29%.

In other words, more "Japanese" or "Korean" cars are sold here than are produced in their countries of origin.

How does that make sense?

So these discrepancies are of course due to the reason that these car manufacturers produce not only in Japan, but also in factories in Europe or the United States.

Where is your Mazda manufactured? (Photo: Walla! system, Udi Etzion)

And China?

It is in third place in terms of countries producing cars that arrive in Israel, with 25,049 units - the difference is that, with the exception of Tesla, no western manufacturer produces significant numbers in China for export.

That is, in the relationship between the country of manufacture and the brand, China is much higher than the other manufacturers and the Israeli customer is biased by the stigmas, who buys a "Japanese" Suzuki Vitara that is manufactured in Hungary in general or a "German" Mercedes CLA but does not know that it is manufactured in Hungary at all - he knows that this car is Chinese from China - And whether it's the trust he places in them or the examination of the value for the price - it gives the impression that China is the new Korea.

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Source: walla

All tech articles on 2023-01-09

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