Israel Faces Billions in Losses Without EV Support, Ministry Warns

Israel's Ministry of Energy and Infrastructure has issued a stark warning regarding the potential economic repercussions of faltering support for electric vehicles (EVs). A new report highlights risks to the pace of EV adoption, projecting billions of shekels in losses and a potential drop to lagging adoption rates among developed nations if comprehensive support measures and charging infrastructure development are not prioritized.

The ministry's analysis indicates a significant decline in EV market share, falling from 25% of total sales in 2024 to just 12% in the first half of 2026. Experts have outlined three scenarios for the market through 2030, including one where government support is withdrawn, potentially preventing the country from reaching its target of 90% EV sales.

Ron Eifer, Director of the Sustainable Energy Department, emphasized that maintaining Israel's leading position requires tax stability, solutions for charging in apartment buildings, and active engagement from leasing companies. The transition to EVs is projected to bring approximately 15 billion shekels to the economy by 2030, with individual savings estimated at 24,000 shekels per replaced gasoline car and 70,000 shekels over the vehicle's lifespan.

Key obstacles identified include difficulties in installing chargers in shared housing, issues with vehicle fleets, and tax uncertainties. To counteract these challenges, the ministry recommends implementing long-term incentives and specific legislation.