The Energy Ministry warned Thursday that without serious, accelerated government support, electric vehicle penetration will continue the decline that began last year, fail to meet official government targets, and cost the Israeli economy billions of shekels.

After the share of electric vehicles peaked at around 25 percent of car sales in 2024, it dropped to roughly 20% in 2025, and plunged to just 12% during the first half of 2026, officials revealed during a press briefing on Wednesday.

By contrast, plug-in hybrids, regarded as greener than gasoline models but more reliable than EVs, have risen from two percent of total sales two years ago to 24% during the first half of this year, while tax increases at the beginning of 2026 narrowed the price gap between electric vehicles and traditional gasoline models to negligible.

Officials attributed the downward trend in EVs to uncertainty over future tax hikes, a lack of recharging infrastructure in apartment buildings, where most Israelis live, and general consumer anxiety regarding long-distance journeys without accessible chargers. At present, standard gasoline and plug-in hybrid cars face a purchase tax of 83% — subject to reductions based on a green taxation pollution formula — while fully electric vehicles are taxed at 48% to December. Nobody knows what will happen next year.

Without intervention, market penetration could plummet to just 10% by 2030, the officials warned.

Unveiling a strategic document examining the economic implications of private EV adoption, ministry officials stressed that continuing delays could cost the economy between NIS 0.6 billion and NIS 2.2 billion in losses in........

© The Times of Israel