November: Car imports down 38%

only 10,148 new cars were sold last month, compared to 16,439 in November 2007
 
The Israel Tax Authority reported last week that Israel's automotive market continued its downward trend with vehicle sales in November 38% less than the same month last year.
 
In a press release the Authority noted that only 10,148 new cars were sold last month, compared to 16,439 in November 2007. All motor vehicle importers reported reduced sales. Mazda, the market leader, were down by 60%, Toyota by 41% and Hyundai by 30.5%.
 
The Tax Authority added that vehicle imports have been declining steadily since April, and that the downward trend intensified in the past two months.
 
During January - November 2008 period 183,557 motor vehicles were imported, 6.1% more than in the corresponding period in 2007.
 
Sources in the Israeli automotive industry noted there are several reasons for the drop in car sales, but the biggest one is the expectation of price cuts on January 1, 2009, when the classification of vehicle groups for customs and other purposes is updated.
 
Another reason for people to hold off on buying new car is that despite the change to the way the Transportation Ministry calculates vehicle model years, 2009 is perceived by the public as being a new model year.