Namibia recorded a 51.4% increase in vehicle sales to 1,320 units in June this year compared to 872 units recorded in June 2022, latest data reveals.
According to Simonis Storm Securities’ vehicle sales report, new vehicle sales have skyrocketed, recording remarkable vehicle sales in June, marking the highest sales volume since July 2017, when 1,346 units were sold.
Simonis Storm Researcher Angelique Bock says this represents a 34.4% month-on-month surge.
“This positive trend is a significant improvement from the figures recorded in May 2023 (982 units) and April 2023 (1,004 units). Commercial vehicles accounted for 56.06% of the total sales, while passenger vehicles made up the remaining 43.94%,” Bock said.
Bock emphasised the significance of the increase in commercial vehicle sales, stating “new vehicle sales were mainly driven by commercial vehicles, which saw a significant improvement of 68.6% year on year and 55.1% month on month”.
The researcher remarked that passenger vehicle sales posted growth of 35.8% year on year and 14.9% month on month, with “this positive growth reflecting a renewed consumer interest in purchasing passenger vehicles”.
Bock also highlighted the impact of the current economic conditions on vehicle prices, saying: “New car prices in Namibia increased by an average of 6.4% in 1H ’23, up from 4.0% in 1H ’22 as the effects of high vehicle inflation and high interest rates continue to exert pressure.”
She further explained that: “Consumers have responded by adopting a buying-down trend, shifting towards purchasing less premium models or opting for vehicles in lower categories in the passenger car segments.”
Meanwhile, in the rental market, Bock noted that sales comprised 10.04% of the total units sold in June.
“This increase in figure demonstrates the heightened activity in the car rental space as rental companies expand their fleets in response to tourism activity picking up.” She added, “While the national fleet is still below pre-Covid levels, we believe the figures are now closer to 75%-80% of pre-pandemic levels.”
She asserted that the surge in vehicle sales is seen as a positive sign for the Namibian economy, indicating increased economic activity and consumer confidence.
“With the government also participating in the market by purchasing vehicles, further growth in the industry is anticipated. These sales figures are encouraging as economic activity continues to bolster. More encouraging is the government’s participation in this market once again, with some orders currently in the market,” the researcher said.
