Israel's Electric Vehicle Adoption Plummets Amid Policy Uncertainty
Israel, once a global leader in electric vehicle (EV) adoption, is experiencing a sharp decline in new EV sales, raising alarms within the Ministry of Energy. In 2024, EVs constituted 24.7% of new car sales, surpassing the European average. However, by the first half of 2026, this figure dropped to just 11.3%, falling below the EU average and resembling rates seen in countries like Cyprus. This trend contrasts with the consistent year-over-year growth observed in most developed nations.
The previous government had set an ambitious goal of 90% EV penetration by 2030, driven by former ministers Merav Michaeli, Karin Elharrar, and Tamar Zandberg, who championed the environmental, energy, and economic benefits of EVs. These benefits included reduced air pollution, decreased reliance on imported oil, and significant cost savings for consumers, estimated at NIS 70,000 over a vehicle's lifetime compared to gasoline cars.
The shift occurred as political leadership disengaged from the issue, leading to a conflict between the professional echelons of the Finance and Energy ministries. A primary concern is the escalating purchase tax on EVs, which rose from 20% in 2023 to a projected 48% in 2026. Compounding this is a lack of policy certainty, with tax decisions often delayed until the last minute, deterring potential buyers. Furthermore, insufficient government initiatives to address barriers like charging infrastructure in shared residential buildings, where 80% of Israelis live, have hampered progress.
The Ministry of Energy advocates for proactive government intervention, such as mandating import quotas for EVs, to reverse the trend. Conversely, the Ministry of Finance prioritizes shifting the public towards public transportation over promoting EV adoption, fearing that cheaper EVs might discourage train and bus usage. Energy officials argue that without intervention, the goal of 90% EV penetration by 2030 is unattainable, and the current trend favors gasoline cars over EVs, with little incentive to switch to public transport, especially given its limited operation on Saturdays.
Separately, the article touches on other issues: Eilat's desalination plant continues to operate unaffected by national water crises affecting the Mediterranean coast, highlighting its unique geographical position. Additionally, a national food security plan until 2050, developed by various government ministries, faces strong opposition from the Ministry of Finance, likely delaying its implementation until the next government takes office. The Yarkon River Authority is also launching a photography community to document the area's flora and fauna.
