AMMAN — Vehicle clearance for the domestic market at the Zarqa Free Zone fell by 65.3 per cent in the first five months of 2026, dropping to 8,214 vehicles compared with 23,691 during the same period in 2025.

In remarks to Al Mamlaka TV, Amer Jayyousi, vice president of the Jordanian Free Zones Investors Association, said that electric vehicles (EVs) recorded the steepest decline among all categories.

EV clearances plunged by 85.7 per cent, falling from 13,739 vehicles to 1,953, making them the most affected segment, he said.

Hybrid vehicles registered the second-largest drop, decreasing by 65.5 per cent from 5,662 to 1,950 vehicles. Diesel vehicles also declined by 8.4 per cent, from 1,979 to 1,812 units.

He also said that gasoline-powered vehicles were the only category to record growth, rising by 8 per cent from 2,311 to 2,499 vehicles over the same period.

Jayyousi said the downturn reflects a clear contraction following regulatory measures issued on June 28, 2025, which restricted vehicle imports, both new and used, to four technical standards.

He said the regulations disrupted imports from key markets, particularly China, Canada and South Korea, and halted the entry of salvage-title vehicles from the United States and Canada.

On re-exports, Jayyousi noted a 59.1 per cent decline, with volumes falling from 34,551 vehicles in the first five months of 2025 to 14,118 in the same period this year.

He attributed the drop to shifting regional trade and shipping patterns, as neighbouring markets, particularly Iraq and Syria, increasingly rely on direct imports from countries of origin, bypassing the Zarqa Free Zone for storage and re-export.

The shift, he added, has led several Iraqi and Syrian investors to exit the zone, reducing warehousing and logistics activity despite continued regional trade flows.

Jayyousi said the Zarqa Free Zone has long served as a regional hub for vehicle assembly and re-export, but recent logistical changes and the reopening of direct trade routes have curbed its role.

He also called for a review of regulations governing the automotive and free zones sectors to restore competitiveness and strengthen the zone’s position as a regional trade hub, citing its impact on investment, employment and transport-linked industries.

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