Vehicle sales in Israel were down by 21.8% year-on-year (y-o-y) for the 10 months to October 2009, despite a better-than-expected performance in the last month. Data from the Israel Motor Vehicles Importers Association show that car sales fell 20% to 115,310 units, while SUV sales fell 22% to 11,116 units. Total vehicle sales reached 138,475 units. In the month of October alone, total sales rose 46% y-oy, largely led by demand from leasing companies. Industry representatives claim that the results exceeded expectations, particularly during the Jewish holiday period and with a shortage of some of the most popular models. However, we would caution that the sales are being compared to October 2008, which was just one month into the global economic crisis and, therefore, a weak month for comparison. Indeed, sales for the 10-month period show all the top five brands posting lower sales than the same period of 2008. Market leader Mazda Motor saw its sales fall 16.5% to 25,196 units, while its US affiliate Ford Motor took fourth with 9,504 units, down 7.6%. The two were split by South Koreas Hyundai Motor in second, with a 14% drop in sales to 15,942 units, and Japans Toyota Motor in third with 15,445 units, down 16.7%. Fifth-placed Chevrolet recorded the biggest contraction of the top five, with a 26.6% drop to 9,366 units. The combined efforts of Ford and Mazda gave local dealer Delek Automotive Systems the lead among distributors, although sales for the period were down 14% y-o-y. Delek Motors is a fully owned subsidiary of Delek Automotive Systems, a public company traded on the Tel Aviv Stock Exchange, and part of the Delek Group. However, the economic downturn has affected company results and revenue for 9M09 was ILS3.4bn (US$893mn) compared to ILS4.2bn (US$1.1bn) in the same period in the previous year. However, an increase in market share in Q309, and a slight recovery of the market saw revenue grow to ILS1.5bn (US$393mn) compared to ILS1.4bn (US$367mn) in Q308. Of the 46,000 cars sold in Israel Q3, Delek Motors sold 13,481 units, up from 12,234 in Q308. Overall the number of cars sold in 9M09 was down compared to the previous year, and this had a knock on effect on net income, which fell from ILS525mn (US$137.8mn) to ILS305mn (US$80.07mn). Net income also dropped in Q309 despite a boost in sales, from ILS193mn (US$50.66mn) to ILS112mn (US$29.4mn) which was attributed mainly to fluctuating currency and exchange rates.

Meanwhile, in September 2009, according to Frankfurter Allgemeine Zeitung (FAZ), Shai Agassi, the boss of California-based electric mobility company Better Place, stated that French automaker Renault could sell 3,500 electric cars in Israel from 2011. He has also estimated that Renault electric cars will be more affordable than petrol-run cars, both in terms of initial outlay and including maintenance costs. Better Place has partnered with the Renault-Nissan alliance to develop an electric car concept. In February 2009 Better Place stated that agreements with 19 Israeli companies had been signed to test out the suitability of the company’s car charging model with their corporate fleets. The companies chosen represent a wide spectrum of industries, including hi-tech, pharmaceuticals, finance and manufacturing. Better Place will install their charging points in the car parks of the companies as well as at employee’s homes. The agreements also include workshops and seminars on the environment for company employees. Better Place is already rolling out an expansion plan for charging points in other countries including Hawaii, Canada, Denmark and Australia.