Projected Surge: Jordan’s EV Sales Set to Jump 45.9% in 2023, According to Report

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Projected Surge: Jordan's EV Sales Set to Jump 45.9% in 2023, According to Report - Jordan - 1

Passenger electric vehicle (EV) sales in Jordan are projected to experience robust growth, expanding by 45.9% in 2023 and reaching an estimated annual sales volume of approximately 23,400 units, according to a recent report by Fitch Solutions.

The report further forecasts that EV sales in Jordan will maintain a solid annual growth rate of 10.4% between 2023 and 2032, with sales volumes expected to surpass 40,000 units by 2032.

This surge in EV adoption in Jordan is attributed to several key factors. Notably, the reduction of import taxes on EVs from 25% to 10% has made them more attractive to consumers when compared to hybrids and gasoline cars, which incur import duties of 55% and 86% respectively.

Additionally, the arrival of affordable Chinese EV models, coupled with the nation’s high fuel prices, has played a pivotal role in the growing demand for passenger EVs.

The report highlights the preference of Jordanian consumers for cost-effective vehicle models, with used vehicles accounting for 70% of total imports in the country, while new vehicles make up only 20%.

Chinese EV brands have become particularly popular in Jordan, representing 40% of the local market share. This trend is mirrored across the MENA region, with Chinese models standing out for their affordability and wide availability, partly attributed to China’s better access to semiconductor chips.

Looking ahead, the report suggests that the developing EV manufacturing sector in the MENA region will further improve EV affordability for Jordanian consumers. The potential joint production of the first Arab electric vehicle involving Egypt, UAE, Jordan, and Bahrain signals promising prospects for regional cooperation in EV manufacturing.

While commercial EVs in Jordan’s market segment are expected to remain relatively small in the short term, the report envisions strong long-term growth as more commercial EV models, such as buses and trucks, become available and companies increase their efforts to decarbonize supply chains.

The Jordanian government has taken initiatives to promote EV adoption, including the purchase of 151 low-emission buses, including 15 battery-electric buses, for the “Rapid Transit Project” in Amman. Several delivery and transportation companies are also adopting strategies to electrify their vehicle fleets.

However, the report points out that the expansion of EV adoption may be partly influenced by the development of the local EV charging network. As of 2022, 54 licenses for electric charging stations, including 41 for public charging stations and 13 for private charging stations, were issued. The government has also approved 2,200 installations of electricity meters in homes for vehicle charging purposes.

The “2025 Jordan National Plan” includes a focus on developing Jordan’s EV charging infrastructure, with the German-based company eCharge collaborating with the government to install 10,000 public charging stations within the next three years.

Overall, with continued fiscal incentives from the government and the ongoing development of the domestic charging network, the report anticipates that EV sales will continue to increase in the short term, supporting a promising outlook for the EV market in Jordan.