Last update - 00:00 09/12/2007
Eco-friendly hybrid cars gaining popularity among Israel's drivers
By Daniel Shmiel
At the end of a year that saw the Nobel Peace Prize go to an environmentalist, it is interesting to see that reducing air pollution has become a fashion in the Israeli car market.
Sales figures of hybrid vehicles in the first 11 months of 2007 show a big rise in their popularity: 1,719 hybrids were sold. This is almost 1 percent of the total number of new cars sold this year, a 280 percent increase from 2006.
Toyota has sold 1,091 Priuses through November, compared with only 454 for all of last year: a 140 percent increase. The Honda Civic IMA had a very successful introduction this year: 620 have been sold, 300 of which were sold in the last month. Most, however, went to leasing companies and Avis. In addition, eight luxury Lexus RX400h SUVs have been sold so far in 2007.
The hybrids have two engines ? one is electric and the other has an internal combustion mechanism. The hybrid principle is to use the non-polluting electric engine as much as possible, which also increases gas mileage.
Dror Goralnik, Toyota's sales manager in Israel, says the growth in hybrid sales points to an increasing awareness of environmental issues. "For many people it is important to drive an environmentally friendly car," he says.
Honda also credits its success to its advertising campaign, as the hybrid car has become a fashion statement, showing drivers to be concerned about the pollution they emit.
A number of high-tech companies such as Cisco have offered their employees the choice of a hybrid as a company car. Knesset members can also choose a hybrid, though there have not been many takers. Only MK Zevulun Orlev, the head of the National Religious Party, has chosen a hybrid over the bigger and more prestigious cars offered to MKs.
The car importers are optimistic about next year, too. Toyota's Goralnik expects unit sales of the Prius to be between 1,500 and 2,000. But this does not mean that these cars will displace gasoline-powered ones soon. The main reason seems to be the price.
The difference in price between the regular, gasoline Civic and the hybrid is NIS 18,000, with the hybrid car valued at NIS 151,000.
Hybrids are also less attractive to businesses because they are in the higher, Group 4 tax bracket, while most of the competing gasoline-powered cars are in Group 2. This means an extra NIS 450 a month in taxable income. Hybrids enjoy a break on purchase tax, but this does not seem to be enough, and future changes may reduce the advantage.
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