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Spotlight on… Israel’s Automotive Technology Industry

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Wednesday, September 22nd, 2010

With the world increasingly challenged by congested roads and polluted air, Israel’s ground-breaking automotive technologies are in the forefront of improving performance, efficiency, safety and air quality. While Israel does not engage in large scale vehicle manufacturing, about 150 Israeli manufacturers supply systems, parts, modules and tooling to original equipment manufacturers and the aftermarket. Israeli companies have successfully adapted military solutions for civilian use and made Israel a notable technology destination for the international automotive industry.

Israel exports about $800 million of automotive parts and systems annually, many of which are purchased by leading OEM manufacturers, including Daimler, BMW, VW, MAN, Renault-Nissan, PSA Peugeot Citroen, GM, Ford/Mazda, Navistar, Volvo Trucks and Jaguar. Such Tier 1 suppliers as Delphi, Bosch, Valeo, Autoliv, Faurecia, Johnson Controls, ZF, Getrag and Magna Steyr also source components from Israel. MAN, Ford/Mazda, Navistar and Hyundai maintain local purchasing offices, while Volvo Bus jointly owns bus manufacturer Merkavim Transportation Technologies with an Israeli company. Tomcar, a local company, manufactures rugged yet agile, military-proven off-road vehicles that have won wide acceptance.

 Israel’s skilled workforce, strict compliance with international quality standards, computerized logistics and advanced R&D capabilities position the country as a prime destination for outsourcing and development of new products. In recent years Israel has developed a number of breakthrough technologies, including specialized materials, advanced electronics, communication systems, driver awareness systems, automotive IT and security. As electronics become an increasingly significant aspect of every vehicle, having recently risen from 15 percent to 35 percent of total car cost, Israel is well placed to become a leader in this market segment.

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