High fuel prices are accelerating demand for electric cars in Jordan

AMMAN — Demand for electric cars has soared with a 40% increase since the start of 2022.

“The increase in demand is due to the global increase in fuel prices,” Salameh Jabali, a representative of the vehicle and vehicle parts sector at the Jordan Chamber of Commerce (JCC), told The Jordan Times. .

Jabali said that since January 2022, nearly 6,000 electric vehicles have cleared customs.

Mohammad Bustanji, managing director of the Jordan Free Zone Investors Commission, noted that this demand is expected to continue to increase throughout the year.

From January to May this year, 5,250 electric cars were cleared, compared to 6,169 gasoline-powered cars, Bustanji said, noting that between June 1 and June 18, a total of 1,050 electric cars were cleared.

Bustanji attributed the increase in demand for electric cars to the government’s decision to allow car dealers to import from China, in addition to the additional 10% tax the government imposed on hybrid cars.

“The increase in the price of auto spare parts is global,” Bustanji noted.

In the local market, the cost of spare parts has increased by 15 to 20 percent, according to Jabali.

Jabali added that the price of imported electric auto parts is also affected by rising global prices.

“The purchasing power of auto parts has dropped almost 50% for new and used cars,” Jabali said.

Jabali urged auto parts suppliers and distributors to reconsider the profit structure of used and new vehicle parts.

“The profit rate hovers around 35% for used cars and 25% for new cars,” Jabali said.

However, Bustanji said electric car parts are expensive due to manufacturing cost and pointed out that spare parts for newly manufactured electric cars are available in the local market.

Meanwhile, Seedra, who is a sales clerk at a car showroom in Amman, said demand for electric cars had increased “significantly” due to the continued increase in fuel prices.

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