Israel cars passengers sales hit the new All Time record in the 2015, the second in a row thanks to a robust economy and stable consumer’s demand. Koreans Kia and Hyundai holds over 25% of market share.
Economic Environment
In Q3, the Israeli economy expanded a significant 2.5% on a sequential basis, thus confirming that the previous quarter’s weak growth was transitory. Despite the escalation of violence in the country, growth in private consumption accelerated in Q3 supported by the recently introduced fiscal easing package, a robust labor market and record-low interest rates.
Moreover, exports rebounded and grew at the fastest rate in nearly two years. In early November, Aryeh Deri, Israel’s Economy Minister resigned, thus paving the way for the government to push forward with a multibillion dollar gas deal with the U.S. company Noble Energy.
The deal, which gives the right to Noble and its Israeli partner Delek to exploit offshore gas reserves, was held back for almost a year due to objections from Deri and the country’s anti-trust authority. In other news, last month the government passed the ILS 329.5 billion (USD 85.0 billion) budget for next year with a thin majority.
Market Outlook
Fueled by continues GDP growth and a strong economy with public debt reduction plan going on for the sixth year in a row without compromising the consumer’s spending, the automotive sector is flourishing reporting a long-term growing path.
Despite in the 2014 the market grew 13.0% hitting the highest level ever, the 2015 was again a year almost positive scoring a new all time record.
As released by the Israeli Department of Transportation System, albeit December sales fell 6.7% due to short demand on fleet market, during the entire 2015 car passengers sold in the country had been 254.748, up 6.3%, first time over the quarter of million units in a year.
Competitive Arena
Koreans Kia and Hyundai sold the 25.2% of total cars in the year with Kia best-selling brand with 33.703 units (+12.6%) and Hyundai second with 31.250 (+14.6%) is reinforcing the leadership with year-to-date sales at 26.608 (+27.6%). Third was Toyota with 29.280 units (+11.5%).
All other competitors are almost far from the podium due to the high mix of fleet (around 50%) and a demand focused on small vehicles at affordable prices.
Indeed the fourth, Mazda, sold 17.057 units (+3.2%) with share only at 6.7%, 5 points lower than Toyota. Fifth was Mitsubishi with 16.121 (+22.7%) and sixth the best European, Skoda, with 16.083 sales (+12.6%).
At OEMs Group level, Hyundai dominates with 25.2% of share followed by Volkswagen with 13.8%, Toyota with 12.1% and Renault-Nissan with 9.5%.
The best-selling models was the Kia Picanto with 12.699 units (+19.8%) with a narrow gap over the second, the Toyota Corolla (12.129 sales, -11.6%). Third was the Kia Sportage with 10.933 units(+206%) followed by the Mazda3 with 8173 (-1.2%), the Hyundai i10 with 7.720 (+31.8%), the Hyundai ix35 with 7.376 (+28.6%) and the Skoda Octavia, best European model, with 7.207 (+1.4%).
Tables with sales figures
In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 Models.
