Enab Baladi – Jana al-Issa
The revival of car imports to Syria has rejuvenated the local car market in terms of availability, allowing the entry of vehicles that the market had been deprived of during the rule of the ousted Assad regime, which halted imports to prevent the drain of foreign currency.
The decision issued by the new Syrian administration months ago has also negatively impacted some small car traders in the market, who lack the resources to import European vehicles. They have lost the value of their showcased cars, which have seen prices drop to less than half, and the movement of purchasing old cars has ceased with the arrival of newer models into the country.
At the end of January, the Syrian Ministry of Transport allowed the import of cars into Syria under certain conditions. The decision stipulated that all types of cars and vehicles could be imported, provided they are not more than 15 years old.
Assistant Minister of Transport, Mohammed al-Rahal, stated earlier to Enab Baladi that the decision was made due to the local market’s need for new types of cars that fit various sectors and contribute to the overall economic development of both private and public business enterprises.
With the policy of reducing previously imposed taxes on this type of trade, a general decline in car prices can be noted in the Syrian markets. This coincides with a significant increase in demand for cars in general in Syrian territories, with many vehicles manufactured more than 15 years ago available in the local market to suit different social classes, according to al-Rahal.
Importing European cars through the north and Jordan
The opening of the import gates has led to a decrease in the prices of both new and previously available imported cars, which has activated the car market in Syria, according to Mahmoud Nasser, owner of a car sales showroom in rural Damascus, as he told Enab Baladi.
Regarding the source of newly imported cars, Nasser clarified that most of them are used European cars coming through Jordan or northern Syria, with a smaller portion coming from the United Arab Emirates, arriving in the country via land crossings.
When asked about the most sold car types during this period, Nasser said that most customers currently prefer purchasing diesel cars due to the lower operating costs compared to those running on gasoline.
The prices of recently imported cars available in the markets vary according to the model year and engine power, though they generally do not fall below five thousand US dollars and may reach up to fifteen thousand US dollars, based on a tour conducted by Enab Baladi at several car sales showrooms.
Affected traders
Mohammed al-Qasim, a 33-year-old owner of a small car outlet in Damascus, has suffered losses amounting to hundreds of millions of Syrian pounds due to the opening of car imports, with the prices of cars displayed in his shop dropping to less than half, as he told Enab Baladi.
Al-Qasim added that his shop now only contains cars displayed before the fall of the regime, which he has been forced to offer at a significantly reduced price compared to what he paid upon acquisition, in line with the current market prices.
So far, al-Qasim has not been able to import any type of car due to the associated costs, which he cannot afford after sustaining significant losses.
A showroom for recently imported used cars in al-Kiswah, rural Damascus – April 10, 2024 (Enab Baladi/Jana al-Issa)
Thousands of dollars in losses
After the price of his legal car, a 2008 Skoda Octavia, was around 30,000 dollars just one day before the fall of the regime, its price has dropped by nearly 50%. Khaled al-Nayef, a 55-year-old car dealer from Qamishli, is trying to recover some of his losses.
Al-Nayef told Enab Baladi that car owners, especially those who deal only in Syrian cars (registered and cleared with the previous regime) and not imported vehicles (European cars entering the area from crossings controlled by the SDF or from northern Syria), have suffered “devastating” losses worth thousands of dollars following the sharp and sudden drop in the prices of Syrian cars.
He added that cars that used to cost about 30,000 dollars have dropped to around 15,000 dollars after the arrival of modern vehicles that are available at lower prices and can be cleared at low rates.
Selling in installments
Trader Khaled al-Nayef, like many other merchants interviewed by Enab Baladi, is trying to compensate for part of his losses by selling Syrian cars in installments and at moderate prices, a practice that was not available before the fall of the regime. Traders say this aims to “recover part of the losses” they have incurred.
Moreover, car owners who had vehicles previously face challenges in selling them due to buyers’ preference for newly imported cars that come at lower prices. This situation has compelled many traders to stop working or to minimize their activities to the bare minimum.
According to what Enab Baladi observed in car buying and selling offices in northeastern Syria, the market is experiencing stagnation in both types of cars, whether imported or Syrian. The prices displayed may sometimes be unrealistic or inflated due to the instability of the markets.
Additional fees in eastern Syria
About a month before the regime’s fall, Ghazi Mohammed (40 years old) from the town of al-Qahṭaniyah sold his Syrian car, a Kia (2008 model), for $12,000.
Mohammed told Enab Baladi that had he waited another month to sell his car, he might have received half that amount, which is why he considers himself “lucky,” after using that money to buy a new imported “H1 Van” to operate for passenger transport on the Qamishli-Malikiyah route.
He added that many residents preferred Syrian cars, even if they were old models and expensive, due to the ease of traveling with them between Autonomous Administration and regime-controlled areas previously, and because they maintain their prices, allowing for resale at any time. Additionally, some were afraid to purchase imported cars due to concerns of “security pursuits and the confiscation of the vehicle if it fell into the hands of a regime security checkpoint.”
According to what Enab Baladi has tracked, many owners of older imported cars have also sold their vehicles, especially those models prior to 2008, and kept the proceeds waiting for newer and cheaper vehicles to arrive as the market for European cars expands in Syria.
Abdul Salam Hussein, a car shop owner from al-Hasakah, told Enab Baladi that the Autonomous Administration allows the entry of regular cars (registered with the Assad regime), while European-imported cars coming from areas under the current government are only allowed entry for one month, receiving a “visit card” worth ten dollars. These cars are not permitted to be customs cleared or registered in the Autonomous Administration areas if they are from the 2016 model year or earlier; after exceeding the month, the car will be confiscated. However, cars imported from the 2016 model year onwards can be purchased by residents of the area from other governorates and registered with the Autonomous Administration after paying certain fees and taxes.
Not a priority
While the decline in car prices may encourage citizens to own cars, now is not the right time to import vehicles, as it is not a priority for Syria, according to political economy researcher Yahya al-Sayed Omar.
In a video recording on his YouTube channel, the researcher stated that the decision is not wrong, but its timing is inappropriate. Instead, it is advisable to stimulate production and direct all capital toward work and investment. Importation can be reconsidered later when the economy improves, which could serve everyone’s interests, according to his perspective.
Importing cars affects small traders’ businesses in Syria Enab Baladi.
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