Jerusalem, 10 September, 2026 (TPS-IL) — Israel’s electric vehicle market is on track to miss government targets and could cost the economy billions of shekels without accelerated government intervention, the Energy Ministry warned Thursday.
EVs accounted for about 25% of new car sales in 2024, but their share fell to roughly 20% in 2025 and just 12% in the first half of 2026, ministry officials said at a briefing Wednesday.
At the same time, plug-in hybrids have surged from 2% of sales two years ago to 24% this year. Tax increases in 2026 have also largely eliminated the price advantage of EVs over gasoline-powered vehicles.
Officials cited uncertainty over future tax policy, inadequate charging infrastructure in apartment buildings and concerns about long-distance travel as key obstacles to EV adoption. Without intervention, EVs could account for only 10% of the market by 2030.
The ministry estimates delays could cost the economy NIS 600 million ($198 million) to NIS 2.2 billion ($730 million) in 2027 alone. By contrast, achieving a target of 90% EV penetration by 2030 could generate nearly NIS 20 billion ($6.6 billion) in economic benefits.
Officials said reaching the target will require expanded financial incentives, legislation supporting apartment-building chargers and penalties for manufacturers and importers that fail to meet EV quotas.