Electric Cars Gain Market Share in Israel Amid Rising Gas Prices and New Affordable Models

In Germany, Europe's largest car market, electric vehicles (EVs) became the top-selling drivetrain group for the first time last month, with 84,000 units sold and a 28.4% market share, surpassing hybrids and gasoline cars. Diesel sales have declined significantly, while plug-in hybrids and EVs continue to grow.

In Israel, hybrids still lead with a 30.7% market share, but plug-in hybrids surged from 9% last year to 24.1% this year, driven by increased availability and generous tax benefits for company car recipients. Pure electric vehicles reached 12.2%, while gasoline cars dropped to their lowest-ever share of 32.9%. Although Israel led global EV adoption in 2024 with a 25% share, it fell to 19.8% in 2025 and dropped to 10% early in 2026 before rebounding to 12%. Market analysts expect EVs to exceed 15% market share by year-end.

The rise in fuel prices and the introduction of more affordable EV models have fueled this shift. Recently, the MG4 Urban was launched at 120,000 shekels, cheaper than many gasoline super-mini cars. Other price cuts include the MG4 XRANGE at 145,000 shekels, the Wuling Hongguang Mini EV (Weiya Free) reduced by 19,000 shekels to 176,000 shekels, and Kia’s long-range EV3 crossover at 170,000 shekels. Hyundai introduced an electric Kona at 175,000 shekels, cheaper than its hybrid version. BYD notably cut prices on the Atto 3 by nearly 20,000 shekels to 155,000 shekels despite significant upgrades.

BYD’s Atto 3 was Israel’s best-selling EV in 2023-2024, and the refreshed model has sold nearly 500 units in two months. Chinese brands dominate EV sales, with XPeng leading as the top-selling brand and model, followed by Tesla, whose Model Y ranks third. Most Tesla vehicles in Israel are imported from Shanghai. The highest-selling non-Chinese EV is the Kia EV3 from South Korea.

Currently, there are 10 recommended new EV models priced under 150,000 shekels, all equipped with fast charging and active safety systems. Among them are the affordable Lipmotor T03, BYD Dolphin Surf, Dongfeng Box, MG4 Urban, Lipmotor B10, MG S5, Ion Y, MG4 X-Range, BYD Atto 2, and Dipal S05. These models offer a range of features, sizes, and prices, making EVs increasingly accessible to Israeli consumers.

The shift toward electric vehicles in Israel is accelerating due to economic incentives, rising fuel costs, and a growing selection of competitively priced models, signaling a significant transformation in the local automotive market.