Jordan 2018. Toyota takes the leadership an awful market

Jordanian Auto Sales

Jordanian Auto Sales in the 2018 fell rapidly down 33% with 30.353 sales, less than half of the 2014 All time record. Toyota jumped on top of the market ahead of Hyundai and Kia, both down over 40%.

Economic Environment

Jordan economy improved in 2018 according to preliminary data, despite a lethargic year for economic growth through to the third quarter—the latest period for which GDP data is publicly available. In late January, the prime minister announced that the fiscal deficit had fallen to 2.3% of GDP in 2018, down from 2.6% in 2017, and that public debt had notched down to 94.0% from 94.3% in the previous year.

Increased tourism activity, the recent re-opening of trade routes with Iraq and Syria and improved gas supplies from abroad, particularly Egypt, should underpin economic growth in 2019. However, fiscal consolidation and tighter monetary policy dampen prospects.

Market Trend

Jordan vehicles market hit the record in the 2014 when sales achieved the 69.583 units, before starting a declining period, with 2016 at 44.950 units and the 2017, stable at 45.312 (+0.8%), but only thanks to strong rebates and hard discount.

In the 2018 the market trend changed immediately and light vehicles sales fell down rapidly since the first quarter, when sales were already down 17.0% and worsening period-by-period, ending the full year down 33%. Indeed, the market closed with registrations at 30.353, less than half of the 2014 All time record.

MarketSales 2014Sales 2015Sales 2016Sales 2017Sales 2018'+/- 2018
Car+LCV69.58361.77444.95045.31230.353-33,0%

Three brands dominated the 2018 competitive landscapes, Hyundai, Kia and Toyota, which hold together over 60% of market share.

In the 2018, containing the lost within acceptable level, the Japanese , Toyota has taken the leadership with 8.139 sales (-13.2%) overtaking Hyundai, actually second with 6.477 sales (-42.7%) and Kia with 5.264 (-53%).

Market Outlook

The impressive and sharp fall should be over since the second half of the 2019 and the market is foreseen to start a recovery, which however will be not fast as the fall was.  The increased tourism activity, the recent re-opening of trade routes with Iraq and Syria and the improved gas supplies from abroad should underpin economic growth in 2019 and in the following years sustaining the recovery of demand for new vehicles in the period 2019-2025.

Being interested to know more, give a look at this updated research. Clicking on the picture, you can see contents.

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