Chinese electric cars flood the Jordanian market despite issues

Chinese electric cars gained popularity due to aggressive Chinese trade offices social media promotion campaigns, but also because their wholesale prices or prices that come with special offers are significantly lower than normal prices.اضافة اعلان

The discounted prices at Chinese trade offices can be attributed to several reasons. One is the negative impact of the COVID-19 pandemic on car sales in the Chinese market; another is the fact that these cars were not successful in the Chinese market for design or performance reasons. This may account for Chinese trade offices’ increased urgency to liquidate the vehicles at discounted prices by re-exporting them to car dealers worldwide, including Jordan.

Car traders in the Amman and Zarqa free zones would not want to miss this profitable opportunity, especially considering the sizable profits they can make by providing electric cars at competitive prices — prices much lower than those of other types of new electric cars available in the local market.

The Chinese electric cars include brands like German Volkswagen and  American Ford that were developed and manufactured for the Chinese market in cooperation with major state-owned auto manufacturing Chinese companies such as SAIC and FAW.


(Photo: Wikipedia)

But because these electric cars are manufactured and intended for the Chinese market exclusively, the official dealerships in Jordan, on behalf of the global manufacturing companies for both Volkswagen and Ford, publicly announced that they are under no obligation to provide after-sales services or original spare parts for them.

And since these cars do not have a manufacturer warranty outside China, Jordanian agents cannot order spare parts. They are not even allowed to obtain special tools or computer software necessary to perform check-ups or update the systems of those new cars, especially batteries, which need to be updated periodically.

However, according to car service experts, these guarantees, no matter how wide their contractual coverage, will fall short compared to the real factory warranty, especially in terms of car battery, which constitutes almost half of the car value.

Local traders seem to have found a makeshift solution to the warranty problem. They reached agreements with local maintenance centers, which service all cars and offer commercial spare parts. However, according to car service experts, these guarantees, no matter how wide their contractual coverage, will fall short compared to the real factory warranty, especially in terms of car battery, which constitutes almost half of the car value.

Moreover, most local insurance companies are reluctant to provide comprehensive insurance coverage for new electric cars imported from China due to the absence of maintenance and repair services and original spare parts from authorized dealers. So, buyers considering buying insurance policies for these cars must understand and expect body parts shortage issues and delays in fixing their vehicles if an accident occurs.

Despite this, demand for these cars remains strong. But will the sales momentum continue once buyers realize the importance of having a manufacturer warranty, or will the expected growth of an “eco-system” of alternative services with used and new parts ease these issues?

More importantly, will public authorities concerned with consumer rights and trade regulations take charge of this unregulated market situation and set rules that would protect consumers?

Time will tell.


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