“The transition to an electric car does not happen within a month or two, but it is a process of three to five years,” said Danny Shavit, CEO of Lubinski, at the Globes car conference. “They set a plan for five years and stipulated that by 2023 the electric vehicle should receive a benefit at the rate of tax paid and expected that in 2021-2022 more electric vehicles would arrive and compensate for that.”
But this scenario did not happen because of various reasons like the corona plague and the war between Russia and Ukraine. According to Shavit, “the vehicles were diverted to Europe, and the war between Russia and Ukraine hit Nickel, which is a very significant steel in the world of batteries, which is manufactured in Ukraine. This business particularly inhibits the entry of electric vehicles into the State of Israel.”
Lubinski has 5 car brands in Israel: MG and 4 European car brands. “In all these brands, we have 14 electric car models. But the quantities we receive are limited quantities. Those who order a Chinese electric car will wait for the first quarter of 2023 and in Europeans will wait between 3-4 months,” he explained.
To understand the situation in the market, one needs to understand the two core points: taxation and infrastructure. So first, in the matter of taxation, an increase from 10% tax to 20% tax is expected in 2023, which means doubling the tax on electric vehicles. Shavit explains that “de facto not many vehicles will enter Israel because there is no stock. In addition, electric vehicles are currently paid a 17% customs duty because the batteries are manufactured in the East. I recommend that the State of Israel postpone the tax increase to allow electric vehicles to enter.” . Shavit demonstrates from countries such as France, Germany and Italy that they are aware of this and encourage entry into the electric vehicle.
Encourage the establishment of additional charging stations
Alongside taxation, there is also the issue of infrastructure. “The most significant thing to provide the appropriate service is to install fast charging stations. The idea is not only to charge the vehicle at home and go on a trip, but to have stations to extend the range of charging the vehicle. In Israel there are about 100 fast charging stations, the number of stations should be encouraged and added.” , said.
Shavit lingers on the fact that European countries will have all sorts of future restrictions and the electric vehicle will go in there. “For example, in cities with more than 100,000 residents, only electric vehicles will enter the city centers. The trend is to remove the polluting vehicles from the city centers, so that there will be public transportation and electric vehicles that will be shared,” he explained. In Israel, he says there will be very interesting projects that will enter the market. Whether we like it or not, Tel Aviv is going for a very low standard of parking so there will be no other option and the trend is going towards shared vehicles.
There are 56 car brands in Israel. The top ten brands control 80% of the market. In terms of demand for electric vehicles, nowadays everyone is looking for an electric vehicle. Shavit explained: “The situation today is the opposite of what it was in the past. When the consumer comes to buy a car, he first asks if there is an electric model of the car he saw. It is a process that happens very quickly. If the customer has the ability to buy an electric car, he will prefer.”
Lack of used vehicles has recently been reported. Shavit pointed to the problem that starts with the first hand: “Once there is a shortage with the first hand, this shortage rolls with the second hand.
Shavit does not want to give a forecast for the coming months. “Having failed at forecasts in recent years, I do not think it is right that I give a forecast. However, I estimate that in the coming year there will be no stabilization. When will this happen? Factors greater than me do not know how to say,” he signed.
*** Full disclosure: The conference is sponsored by Lubinski and GOLDMAN CARS