Israel's automotive sector ended one of the best years in its history yesterday, with more than 190,000 new cars, including taxis meeting Israel's roads in 2008. Nearly all importers saw double digit growth in deliveries, across all segments in 2007, compared with 2006, with the family vehicle segment recording exceptionally strong growth, including the niche and luxury vehicle segments.
Preliminary, unofficial figures obtained by "Globes" reveal that Delek Automotive Systems Ltd. (TASE: DLEA) broke its own sales record and is expected to end 2007 with 42,000 deliveries of Mazda and Ford cars. Automotive sector sources believe that the company's results for the fourth quarter of the year will show the best quarterly sales and profit in its history.
Hyundai Motors Israel expects 22,500 deliveries in 2007, of which 1,850 were the company's Tuscon off-road car. Toyota Israel made a record 21,700 deliveries, almost 20% more than its initial projection. The company's deliveries included 1,980 off-road Land Cruisers, worth a total of $140 million. It also delivered 1,200 Prius hybrid cars, and more than 1,100 Camry saloons.
Volkswagen importer Champion Motors Ltd. delivered almost 15,000 cars in 2007 and saw an increase in all models. Universal Motors Israel Ltd., which imports Chevrolet, Isuzu, Saab, and others is expected to end 2007 with deliveries of more than 14,000.
Japanese manufacturers saw brisk growth in 2007. Subaru crossed the 10,000 deliveries level, Daihatsu added 9,500 cars, Suzuki and Honda are likely to end 2007 with more than 8,000 deliveries each, while Mitsubishi sold 9,000 new cars.
The sources believe that the deliveries in December were dominated almost entirely by vehicle fleets, and that January will be a positive month despite a marked slowdown in sales to private customers. The sources expect January to be record month with close to 20,000 deliveries, owing to the many customers waiting to take delivery of cars they purchased in the year just ended.
The sources note that 2007 would have been even stronger, were it not for the difficulties in deliveries of some leading brands and delays in sea haulage, principally from East Asia. Thousands of cars ordered in advance from Israel are now awaiting shipment in ports in Japan and South Korea, as sea haulage companies struggle to cope with the backlog of new orders awaiting shipment.
Published by Globes [online], Israel business news - www.globes.co.il - on January 1, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008