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THE AUTOMOTIVE INDUSTRY IN ISRAEL

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ALL THE MAJOR AUTOMOTIVE SEGMENTS ARE REPRESENTED IN ISRAEL

The Israeli market consists of both veteran companies that specialize in vehicle assembly and Tier 1, 2 and 3 supply, engaging in traditional and advanced manufacturing processes, and companies that specialize in innovation, advanced technologies and facilitation of automotive manufacturing processes.

VEHICLE ASSEMBLY (OEM) AND TIER 1, 2 AND 3 SUPPLY

1. OEMs: There are several manufacturers in Israel that assemble the final automotive product. These include buses, military vehicles and others (trailers, containers, fire-extinguishing vehicles, vehicle conversion).

2. Tier 1 aftermarket suppliers: Over 60 Israeli companies manufacture aftermarket products for the automotive industry. These include spare parts and accessories such as batteries, ventilation and air-conditioning systems, fleet management systems, air brake diaphragms, electric starters and alternators, seals, thermostats, gears, gear pumps, bearings and motor valves, filters and more.

3. Tier 1 OE suppliers: Over 50 Israeli companies supply components to OEMs and Tier 1 suppliers worldwide, using advanced technologies to manufacture various types of high-quality components that are tailored to their customers' needs. These technologies include forging, high-pressure ink injection, metal injection, coating and reinforcement, rubber injection, etc.

ADVANCED TECHNOLOGIES (Electronics, Software, Innovation and Driver-assistance Systems)

Many Israeli companies develop aftermarket systems and technological innovations related to autonomous driving and the automotive market. These companies design, manufacture and supply diverse products including safety and driving assistance systems, tracking technologies, navigation and control systems, inter-vehicle connectivity, cyber protection and voice recognition.

Over 450 local companies operate in the field of the smart car industry. About 17% of these companies develop autonomous driving technologies and auxiliary technologies such as sensors, radar, LiDAR technologies and more. Another 15% operate in the field of electric cars and batteries.

MANUFACTURING PROCESSES TO IMPROVE AND STREAMLINE MANUFACTURING

Over twenty Israeli companies supply services and products that facilitate production processes for OEMs and suppliers in the various tiers. These products and services include manufacturing control software, monitoring and assessment solutions, corrosion- preventing packaging products, advanced tools for metal work, software solutions for supply chain management, 3D printing solutions for accelerated prototype design and production, and automatic welding solutions.

SMART TRANSPORTATION

The use of different types of technology to streamline travel, by making it shorter, safer and cleaner.

In most cases, the concept of smart transportation includes Intelligent Transport Systems (ITS) that use advanced technologies to achieve these goals.

Israeli smart transportation companies have become world-renowned for their achievements in this field. These companies develop products based on software innovation and cutting- edge technologies, like products developed for the automotive industry.

Smart transportation is a rapidly growing field in Israel, with the establishment of many new companies in recent years. These companies are tightening connections with large global corporations (such as IBM and General Motors) and are quickly building their reputation in the global smart transportation market. The most noted examples are Waze and Mobileye. Waze was acquired by Google in 2013 and Mobileye was acquired by Intel in 2017. Following in their footsteps, many other companies in the field are growing and establishing international partnerships.

ALTERNATIVE FUELS

The development of fuel alternatives that are more efficient and less pollutant that the common oil-based fuels (diesel and petrol).

Recent years have shown a significant increase in the development of alternative fuels in Israel. The Israel Fuel Choices Initiative was launched in 2011, and included the establishment of a dedicated administration in the Prime Minister's Office. The administration is responsible for promoting the development and integration of fuel alternatives for transportation, in order to reduce Israel's dependency on oil for both security and sustainability reasons. The objective of this initiative is to reduce oil usage for transportation in Israel by 30% by 2020 and by 60% by 2025. The administration has signed cooperation agreements for the development of natural gas-based fuels with Fiat Chrysler, Iveco and Magneti Marelli.

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