The Jordanian car market is the largest hybrid and electric
vehicle market in the Middle East. That fact began as landmark legislation
introduced nearly 15 years ago, when tax incentives aimed at curbing the
environmental impact of vehicles in Jordan was introduced.
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These incentives came as part of Jordan’s commitment towards
international efforts to curb global warming. That bold decision resulted in a
very positive shock to the local market, which is accustomed to staggeringly high car import taxes reaching
85 percent of a car’s value. That tax break created instant demand for hybrid
cars, and opened the floodgates for the mass migration of car buyers from
traditional gasoline powered cars to new offerings powered by what was a novel
technology.
Just to clarify, the nature of Hybrid technologies to those
who are not familiar with them, simply put, is a system that includes a
conventional engine running off fuel (gasoline or diesel), combined with an
electric motor. A battery powers the electric motor, and a management system
draws power from the electric or traditional engine to power the wheels as per
the driving conditions. As a result, hybrids achieve “the best of both worlds”
in terms of economy and power.
Jordanian consumers soon discovered that the hybrid powered
cars offered many more benefits than just a tax incentive. The level of fuel
economy offered by this technology have proven to be a huge advantage and vital
to decreasing running costs, which became more crucial due to the rise of
gasoline prices. That economical advantage kept demand intact, even after a
sudden shift in government policy towards halting all incentives and exemptions
for hybrids. Nowadays, the tax levied on hybrids is 50 percent.
As the rapid development of hybrid technology continued,
more and more models from several segments, now offer hybrid options for almost
every car segment on the market: Sedans, sport utility vehicles, and even
trucks are now largely available as hybrids or plugin hybrids. Moreover, entire
fleets of models from leading European and Asian luxury brands, became
available as hybrids.
The Jordanian love affair with the hybrid car is a prime
example of how smart legislation can lead to a shift in consumer behavior
towards a better direction in car buying; in a way that would be better for the
environment, the economy, and owners’ pockets.