Amman, March 4 (Petra) – Jordan’s vehicle market is witnessing increased activity, driven by competition in pricing, specifications, after-sales services, and financing options, according to local industry representatives.

The market has entered a more structured phase due to government regulatory measures that have improved vehicle quality, ensured transparency in pricing, and standardized warranties. The Automobile Dealers and Traders of Automobile Parts said these measures have bolstered both consumer and investor confidence.

Recent observations by the Jordan News Agency (Petra) noted multiple advertisements from dealerships offering direct discounts, clear price listings, and flexible financing schemes to stimulate sales.

Last June, the Cabinet approved an amendment to the 2025 Special Tax Law, reducing total taxes, including general and special taxes, on vehicles. The decision was part of broader government efforts to support the economy and ease financial burdens on citizens. Under the amendments, taxes on gasoline vehicles dropped from 71 percent to 51 percent, hybrid vehicle taxes fell from 60 percent to 39 percent, and the special tax on electric vehicles was standardized at 27 percent for all categories, replacing the previous system that could reach 55 percent.

Zaid Abdallat, Secretary of the Automobile Dealers and Traders of Automobile Parts, said competition is increasingly focused on product quality, service levels, after-sales support, and genuine manufacturer warranties, rather than prices alone. He highlighted the wide availability of gasoline, hybrid, and electric vehicles meeting European and Gulf standards, providing consumers with diverse choices tailored to their needs and purchasing power.

Jihad Abu Nasser, representing the automotive sector at the Jordanian Free Zones Investors Association, said free zone dealerships are offering direct discounts and transparent pricing to stimulate sales ahead of Eid al-Fitr. He emphasized that new vehicles come with valid warranties approved by the Ministry of Industry and Trade, while used cars are certified by centers accredited by the Jordan Standards and Metrology Organization, ensuring transparency in technical condition.

Abu Nasser added that free zone facilities allow visitors to inspect and compare a wide range of vehicles daily, except Fridays, saving time and enhancing informed purchasing decisions. Dealerships also offer gasoline, diesel, hybrid, and electric cars, as well as tractors, machinery, and equipment, with some introducing Gulf-specification vehicles to increase competition.

Islam Abu Dawas, Business Development and Training Manager at Honda, noted that vehicle demand typically surges during Ramadan, driven by financing offers, discounts, and promotional campaigns. She observed growing interest in fuel-efficient and electric vehicles, with consumer sensitivity to prices and financing conditions shaping purchasing decisions.

Abu Dawas indicated that demand is expected to remain moderate after Ramadan, influenced by purchasing power, tax policies, and financing availability.

The government’s tax amendments and sector reforms aim to reduce ownership costs, diversify consumer options, and improve the overall affordability and accessibility of vehicles, complementing ongoing measures to ease citizens’ financial burdens and enhance quality of life.

//Petra// AJ