The Israeli new car market is in decline. According to the Automobile Importers Association, since the beginning of the year until the end of August, a total of 201,212 new cars were delivered in Israel — a 15% decrease compared to the corresponding period last year, when 237,702 new cars were sold.
2021 was a record year for the Israeli automobile market and therefore some decrease was expected this year. However, the decline is greater than projected, mainly due to a global chip crisis as well as the war in Ukraine, which deepened the difficulties faced by the global supply chain, including the supply of components to the automotive industry. In such tight market conditions, Israeli importers decided to hike prices at the start of 2022 and they rose further with growing production and shipment costs.