Electric Car Market in Israel Shows Diverging Segments and Varied Depreciation Rates
The electric vehicle (EV) market in Israel has shifted notably since its peak about 18 months ago, when EVs captured 25% of the market, aligning Israel with leading European countries in green transportation. Currently, the market shows a clear bifurcation between budget EVs priced under 150,000 shekels and luxury EVs costing over 200,000 shekels, with the mid-range segment around 170,000 to 180,000 shekels shrinking significantly. This change is driven by aggressive discounts and "zero kilometer first-hand" promotions that have largely eliminated the mid-tier category, alongside price adjustments such as BYD's Atto 3 dropping from around 170,000 to 150,000 shekels.
According to the Israeli Vehicle Importers Association's delivery data, which mainly reflects sales numbers including dealer acquisitions, the top-selling EV in the first half of the year was the luxury brand XPeng, starting at about 200,000 shekels, with 3,183 units sold. Tesla followed closely with 3,155 deliveries, also a premium brand. The first more affordable brand was BYD in third place with 1,973 sales, followed by Changan DiPao, Geely, Zeekr, Aion, MG, and Kia. Notably, only Kia among these is a non-Chinese brand.
The used EV market in Israel also reflects brand success, with depreciation rates varying widely among models introduced in 2025, a critical first year for value retention. For example, XPeng's 6G CORE model saw a depreciation of about 13%, while Tesla Model Y Long Range lost 27%, and Kia EV SR depreciated by 33%. Generally, brands with higher sales rankings experience lower depreciation, indicating market success correlates with better value retention. Luxury EVs tend to depreciate less than budget models, possibly due to stronger marketing, less fleet sales, or more loyal customers.
Interestingly, Western origin does not guarantee better value retention, as seen with Tesla and Kia, suggesting that Chinese EVs offer competitive alternatives that challenge traditional Western and Korean brands in Israel. Price lists are considered starting points for negotiation, and actual prices can be significantly lower, especially in the budget segment.
This evolving market dynamic highlights the growing complexity of Israel's EV landscape, with clear segmentation and brand-dependent depreciation shaping consumer and dealer behavior going forward.
