Jordan March. Toyota booming in a market surging 10.4%

Jordanian Auto Sales

Jordanian Auto Sales improved by 10.4% in March, with 2.850 units sold. Toyota is dominating – doubling its sales this month – ahead Hyundai and Kia. Outstanding performances registered by Isuzu, Ford and Honda.

 

Economic Environment

Jordan economy appears to be on the cusp of a turnaround after years of sluggish growth. In February, annual industrial output increased for the first time in nearly one-and-a-half years. This was due to greater manufacturing and electricity output, while quarrying production fell. Moreover, in January–February, the merchandise trade deficit narrowed compared to the same period a year earlier, as exports increased and imports fell.

Exports rose on the back of increased clothing shipments, while imports decreased on a fall in oil purchases. Meanwhile, on 5 May, the government announced it has requested a new program with the IMF to support the country’s economic development.

 

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.

The 2019 started with a flat trend since in January sales were 2.593 (-3.1%) and in February went up 2.2% with 2.147 units sold. In March the market surged 10.4% with 2.850 sales, leading year-to-date figures at a positive score (+3.8%) with 7.638 units sold.

The competitive landscape is currently dominated by 3 brands – Hyundai, Kia and Toyota – which hold together over 60% of market share.

In March, the ranking was still led by Toyota with 2.361 year-to-date sales (+46.4%) ahead of Hyundai, second with 1.733 sales (-7.5%) and Kia with 706 units sold, losing a disappointing 60.9%.

Meanwhile, outstanding performances were registered by Nissan, Isuzu, Ford and Honda.

 

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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