Jordan News

The car markets are witnessing a significant rise after the unstable conditions experienced by the car production factories in the world, which are still suffering from the crisis and the repercussions of Corona until today.

According to experts, the Russian-Ukrainian war came to deepen the car market crisis in the world in terms of stopping the export of raw materials produced by the warring country, which are considered one of the most important materials in the production of cars.

The car market in Jordan has witnessed a significant increase that has affected the auto sector since the beginning of this year when the government approved a sales tax on hybrid cars, and today the crisis is reaching gasoline cars, which is also witnessing a rise due to the lack of supply from global factories and the high costs of shipping and supply.

global production shortage

For his part, the representative of the automotive sector in the free zones, Jihad Abu Nasser, said that the car markets are witnessing a shortage in global supply due to the decline in production globally, as the markets are still suffering from the consequences of the Corona pandemic, which reduced the volume of global production due to a shortage of raw materials.

In an interview with “Jordan News”, Abu Nasser indicated that Jordan is witnessing a rise in car prices, similar to the countries of the world, and this is the result of several reasons, perhaps including the high prices of shipping and supply.

He added that one of the main reasons that contributed to the rise in car prices is the decline in production from car factories, due to a shortage in the production of raw materials that are used in the automobile industry due to the great demand for them and their shortage in the market.

And he indicated that a substance called “conductive chips” is included in the manufacture of car additives in terms of navigation systems, cameras, screens, airbags (airbags), heating and other additions, as it witnessed a great demand for it during the Corona pandemic, as it is involved in the manufacture of computers, computers and various electrical devices, and today it is witnessing A shortage in global markets, which contributed to the lack of production for companies’ factories.

He pointed out that some companies have resorted to canceling or reducing some additives in cars that are manufactured due to the unavailability of conductive chips and the high demand for them.

New cars raise the prices of used cars

And Abu Nasser indicated that despite the movement of the markets after the Corona virus and the increase in its activity, the car market still suffers from great inflation, as modern cars are not available due to the lack of supply and the decline in manufacturing quantities from the countries of origin.

Abu Nasser said that global markets, including the Jordanian market, are witnessing a great demand, but there is no supply, as car agencies in Jordan cannot meet the demands of traders for modern cars due to the decline in global supply and the high prices, as it takes any order of cars to arrive from a month to 4 months and sometimes more.

He pointed out that in a market such as the American market, the car market witnessed a huge inflation during the current year 2022, which reached 56%, as a result of the scarcity in the availability of cars in the markets.

The war increases the car market crisis and raises their prices

And he indicated that the Russian-Ukrainian war had triggered a crisis in the car markets, as a number of German car factories had stopped production because of their dependence on importing parts from Ukraine, which had stopped manufacturing.

He added that one of the other problems that caused a crisis in the car market is Russia’s stopping the export of iron and the rise in prices globally, which is the main material in the car industry, and therefore production costs will rise on the countries of origin, pointing out that the war has caused a new and significant rise in car prices.

He indicated that it was expected that car prices would stabilize globally by the beginning of 2024, but the crisis of the Russian-Ukrainian war had extended and increased the life of the crisis for an unknown date.