The government plans to spend N$285.5 million on vehicle purchases for the 2024-2025 fiscal year, an increase from N$76.6 million allocated in the 2022-2023 financial year.
“Of this amount, N$245 million (85.8%) is allocated [to purchase vehicles] for operational purposes, while the remaining N$40.5 million is designated for purchasing vehicles for development purposes. This increase in public spending is expected to contribute to the continuation of an upward trend in vehicle sales in 2024,” Simonis Storm’s Researcher Halleluya Ndimulunde said.
This comes as Namibia’s total new vehicle sales hit 1,102 units in February 2024, marking a slight decline of 0.1% from last year’s 1,103 units, official figures show.
According to the latest data from Simonis Storm, the month-on-month data reflects a notable uptick, with sales soaring by 16%.
Simonis Storm said the performance aligns with historical trends, as February typically sees heightened sales volumes, attributed to post-festive season recuperation and tax-driven transactions.
“In February 2024, rental agencies purchased 38 new vehicles, all of which were Toyota passenger vehicles. Interestingly, there was no recorded data regarding vehicles sold to the government, despite an increase in budget allocation,” said Ndimulunde.
She added that commercial vehicles led the annual sales increase, accounting for 57.6% of total units sold as the category recorded 16.7% y/y growth.
Meanwhile, light commercial vehicles led the pack, with 572 new units sold, marking the highest figure since June 2023.
Medium commercial vehicles showcased an annual and monthly decline to only 15 units sold.
On the other hand, the firm noted that heavy commercial vehicles increased to 15 new units sold in February 2024 from five in January 2024 and eight in February 2023 – the highest since September 2022.
Similarly, extra heavy commercial vehicles also saw an uptick in new units sold, rising to 33 from nine in January 2024 and 24 in February 2023.
“Although these categories contribute a smaller portion to total vehicle sales for the month, an increase in heavy and extra heavy commercial vehicle sales typically indicates growth in industrial and economic activity, suggesting potential expansion in sectors like manufacturing, construction, and trade,” said Ndimulunde.
Additionally, buses recorded no sales during February 2024 as passenger vehicles accounted for 42.4% of total sales, with 467 new units sold, representing a y/y and m/m contraction of 16% and 0.6%, respectively.
This comes as the annual inflation for transport category which accounts for 14.3% of the consumer basket stood at 6.5% during February 2024.
“Although inflation in this category is usually driven by the costs of personal transport, such as petrol and diesel prices, the recent increase can be attributed primarily to vehicle purchases, specifically motor cars. This led to an annual inflation rate of 10.5% y/y in February 2024, up from 5.3% y/y in February 2023,” Ndimulunde said.
