We will all pay billions for this: a plunge in the entry of electric vehicles into Israel

A policy document from the Ministry of Energy reveals a drop in the penetration rate of electric vehicles in Israel from 25% in 2024 to just 11% in 2026. The ministry warns of billions of shekels in damage to the state coffers if the trend continues, and points to bureaucratic barriers and a lack of government policy.

A policy document published today (Thursday) by the Ministry of Energy reveals a sharp drop in the penetration rate of electric vehicles in Israel. According to the data, the penetration rate stood at 25% in 2024, but by 2026 it will be cut to just 11%. The ministry warns that continuation of the trend could cause economic damage of 1.6 billion shekels to the state coffers in 2026, and 5 billion shekels by 2030. In contrast, meeting the government target of 90% electric vehicles of all sales by 2030 would yield a benefit of about 15 billion shekels. Each electric vehicle that replaces a gasoline vehicle embodies an economic benefit of about 24,700 shekels over 12 years, including savings in energy costs and reduced pollutants. The consumer also has a clear economic advantage, with average savings of about 70,000 shekels over the vehicle's lifetime. The document points to key barriers: bureaucracy hindering the installation of charging stations in shared buildings, a lack of electric vehicles in the leasing market (which constitutes about 40% of the market), and consumer concerns about driving range and charging options. The Ministry of Energy warns that despite government targets, there is currently no real policy on the matter.