Namibia registered a record number of 9,848 vehicles sold between January and September this year, marking the highest sales since 2017, official figures reveal.
According to a Simonis Storm Securities report, year-on-year vehicle sales increased, with 1,054 vehicles sold in September, and demand for new vehicles has decreased for the third month.
The research firm said new vehicles accounted for 75% of total sales in September, compared to statistics from the previous month.
“Escalating global oil prices have led to a surge in fuel costs, while the overall cost of living has witnessed a similar upward trend, rendering it increasingly challenging for consumers to consider purchasing new vehicles,” reads a report by Simonis Storm Securities.
According to the report, passenger vehicle sales experienced an increase of 3.9% month-on-month (m/m), while commercial vehicle sales decreased by 11.3% m/m in September 2023.
Annually, passenger vehicle sales increased by 4.6% year-on-year (y/y) and commercial vehicle sales by 2.5% y/y in September 2023.
The report revealed that the Ford Ranger Raptor is in high demand, with 1,009 customers on the waiting list in Windhoek.
Further, 458 light commercial vehicles, 17 medium, 13 heavy commercial vehicles and two buses were sold in September, representing an increase for light and extra heavy commercial vehicles and a decrease in medium and heavy vehicles.
“Many local dealers are proactively offering extended payment holidays to entice potential buyers. Additionally, the heightened demand for vehicles among businesses suggests a positive sentiment in the local market, indicating a propensity for business expansion,” the report reads.
During the month, 45% of vehicle sales were attributed to Toyota, making it the leader of the market as previously reported, it is followed by Volkswagen with 12% of the sales.
Kia contributed 8% toward sales. Ford and Nissan contributed 7% and 8% respectively.
Namibia imports 81% of its vehicles from South Africa, but imports from Japan are becoming more popular. The report noted that the increase in Japanese imports can be attributed to the fact that Japan has a more stable economy coupled with a skilled workforce.
“…and their brands that are demanded in Namibia, specifically Toyota, Honda, Nissan, Mazda, Subaru, Mitsubishi, Suzuki, Isuzu and Daihatsu. This trend has the potential to reduce costs for dealers and contribute to the shifting dynamics within the import landscape,” the report reads.
There has also been a decline in vehicles purchased by credit only, accounting for 36% of the sales and cash transactions accounting for 64% of the sales.
According to the National Association of Automobile Manufacturers of South Africa (NAAMSA), affordability is the main cause of the inconsistency in sales performance for the automotive sector.
