Car imports to Israel decline due to war

Tel Aviv [Israel]: The Israel Tax Authority reported a sharp decline in the Import of private vehicles to Israel in 2023 that it attributed to the ongoing war in Gaza.

In 2023, 283,835 private vehicles were imported into Israel, compared to 306,087 in 2022, a decrease of 7.3 per cent. The import of vehicles in the first three quarters of 2023 increased compared to the corresponding period last year and decreased in the last quarter with the outbreak of the Iron Swords War due to a decrease in demand, delays and increased transportation costs and the security threat associated with the transfer of goods through the Red Sea.

Commercial vehicle imports amounted to 10,278 vehicles in 2023, compared to 12,052 in 2022, a decrease of 14.7 per cent.

In December 2023, the importation of 51,729 (private) vehicles was recorded. This is a higher amount than the average in a normal month, which is explained by the advance of electric vehicle imports before the purchase tax increase. However, this is a decrease of 18.1 per cent compared to 63,137 vehicles that were imported in December 2022.

Also in December 2022, the import of electric vehicles was brought forward on the eve of the green taxation formula update and the purchase tax increase on electric vehicles from 10 per cent to 20 per cent. Electric vehicle imports accounted for 24 per cent of total vehicle imports in December 2023. The government said it would have reached even higher percentages if it were not for the security threat associated with the transfer of goods through the Red Sea following the start of the war.

Commercial vehicle imports amounted to 822 vehicles compared to 2,188 in December 2022, a decrease of 62.4 per cent.