The rising dollar rate, rising prices by car manufacturers and rising sea freight prices continue to push up new vehicle prices. This week, Toyota also joined the trend, with an average price increase of 2% -3%. For example, the Toyota Yaris, the hybrid version of the Crossover Rab 4 and the Toyota Camry have risen in price by about NIS 5,000. All versions of the Corolla have risen in price by about NIS 4,000, as has the CH-R crossover. The luxury models of the Highlander and Land-Cruiser brand have risen in price by about ten thousand shekels.
As reported in Globes, earlier this week the GEELY brand was also priced, which is also imported by Union. The Geometric C crossover, which is the best-selling electric vehicle in Israel this year, has risen in price by an average of 4%.
The Lubinski company also updated prices in the new price list, which was published in early July. The average price increase is around NIS 2,000 in private cars. Among other things, the crossover model with MG EHS plug-in propulsion, which is the best-selling plug-in model in its category, also increased by NIS 2,000. The car now costs about NIS 172,000.
Other importers, especially those who pay manufacturers in dollars such as the Korean brands and various brands imported from China, are considering raising the price of some of the key models in the near future. A senior source in the industry tells Globes that “we have been dealing with frequent price increases by manufacturers for some time due to rising production prices. So far they have hardly been reflected in price lists due to the stability of the shekel.
In addition, the industry notes that recently there has been a significant jump in sea freight prices due to a sharp rise in fuel prices. According to the importers, the price of transporting cars by sea, mainly from the east, has risen by close to 60% since the beginning of the year, and the cost can now reach about 10% of the price of the car.
It should be noted that a horizontal price increase in the third quarter of the year, as opposed to a spot price increase in a single model, is very rare in the Israeli car market. In the past decade, such price increases have been made only in response to a change in taxation policy. The situation is particularly unusual because most importers today face limited inventories and long appointment lists. This means that the price increase is relevant in many cases for vehicles, which will be provided to customers only in 2023 and may probably become more expensive again at the beginning of next year. It should be noted that in January 2023 the calculation formula for “green taxation” is to be updated and accordingly the tax benefit on a number of key models will be reduced.