Jordan 2014. Auto market pushed up by fast economy

Jordan Cars Market

Jordan vehicles sales in 2014 benefit from the low oil price, positive economic environment and increased demand by both fleet and private customers. Koreans dominate together with Toyota.

Jordan GDP increased 3.3% annually in the final quarter of last year, which marked an improvement over the 3.1% growth tallied in the third quarter 2014. Low oil prices have eased fiscal strain and provided relief to the economy.

Jordan imports around 95% of the energy it needs and such purchases represent roughly 40% of the government’s budget. Meanwhile, Jordan continues to feel the pressure of an influx of more than 1 million refugees fleeing the armed conflict in neighboring Syria.

Jordan recently closed down the Nasib Border Crossing due to ongoing clashes and looting on the Syrian side of this shared free-trade zone. The border closure is expected to significantly choke trade and economic activity in the area.

The domestic vehicles market has reported a huge increase from the previous year with final sales reported at 69.588 units. While the positive economic environment and the increased demand due to immigration has pushed up the market, we believe final year data are not comparable with the previous year figure.

Local observers reported as the new customs rule has helped the official distributors finally creating a barrier to grey market and the bulk of vehicles previously imported as “used” with no kilometers, transit the customs as new through the official networks.

However, the competitive arena was unchanged with the market dominated by three brands, Kia, Hyundai and Toyota.