Category Archives: Vehicle Sales

1,134 New vehicles were sold in June, a 23.5% m/m increase from the 918 vehicles sold in May. However on a year on year basis new vehicle sales is down 5.6% from June 2017 when 1,220 vehicles were sold. Year-to-date, 5,938 vehicles have been sold, 12.3% less than in the first half of last year, making 2018 the slowest year for car sales since 2012. Of the 5,938 vehicles sold this year, 2,668 were passenger vehicles, 3,002 were light commercial vehicles, and 268 were medium or heavy commercial vehicles. On a twelve-month cumulative basis, a total of 12,371 new vehicles were sold as at June 2018, a decrease of 14.1% from the 14,407 sold over the comparable period a year ago.

A total of 465 new passenger vehicles were sold during June, an increase of 24.3% m/m, but a drop of 10.4% y/y from the 519 passenger vehicles sold in June 2017. Year-to-date passenger vehicle sales amounted to 2,668, representing a decline of 11.9% from the first half of 2017. For the past 6 months, passenger vehicles have, on average, made up 44.9% of the total number of new vehicles sold.

Commercial vehicle sales displayed a similar trend, increasing by 23.0% m/m to 669 vehicles sold in June, but contracting by 1.9% y/y. Of the 669 commercial vehicles sold in June, 607 were classified as light, 26 as medium and 36 as heavy. On an annual basis, light commercial sales grew by 6.3%, medium commercial sales declined 7.1% while heavy and extra heavy sales have contracted by 56.6% albeit from a high base. On a twelve-month cumulative basis, commercial vehicle sales remain lackluster with light commercial vehicle sale decreasing by 14.0% y/y, medium commercial vehicle sales declining 2.8% y/y and heavy commercial vehicle sales contracting by 21.1% y/y.

Toyota continues to lead the market for new passenger vehicle sales in 2018 based on the number of new vehicles sold, claiming 37.5% of the market, followed by Volkswagen with a 27.6% share. They were followed by Hyundai and Kia at 5.4% and 4.8% respectively.

Toyota also remained the leader in the light commercial vehicle space with 60.1% market share, with Nissan in second place with a 14.1% share. Ford and Isuzu claimed 8.9% and 5.5% respectively of the number of new light commercial vehicles sold for the year. Hino leads the medium commercial vehicle category with 44.0% of sales while Scania remains number one in the heavy and extra-heavy commercial vehicle segment with 33.6% of the market share year to date.

The Bottom Line

The cumulative number of new vehicle sales continued to contract on a 12-month basis, amounting to 12,371 at the end of June. Year-on-year, the 12-month cumulative number of new vehicles sold has contracted by 14.1% from the 14,407 cumulative sales recorded in June 2017. The year-on-year decline in new vehicle sales figures suggests that vehicle owners are holding on to the vehicles they already own or purchasing second hand and imported vehicles. The continued slowdown in commercial vehicles sales remains worrisome as it is an indication of lower capital expenditure by corporates and lower business confidence in general.

A total of 918 new vehicles were sold in May, representing an 11.3% m/m increase from the 825 vehicles sold in April, but 20.5% lower than in May 2017 when 1,155 new vehicles were sold. Year-to-date 4,804 vehicles have been sold of which 2,203 were passenger vehicles, 2,395 light commercial vehicles, and 206 medium and heavy commercial vehicles. From a rolling 12-month basis, a total of 12,438 new vehicles were sold at May 2018, representing a contraction of 16.1% from the 14,822 sold over the comparable period a year ago.

A total of 374 new passenger vehicles were sold during May, just 1 more than in April. From a year-on-year perspective however, May 2018 new passenger vehicle sales were 116 units lower than the 490 sold a year ago. The rolling 12-month vehicle sales continue to reflect weakness in the number of passenger vehicles sold, declining 15.2% as at May. Year-to-date passenger vehicle sales rose to 2,203, reflecting a 12.2% decline from May 2017.

544 Commercial vehicles were sold in May, representing a 20.4% m/m increase, but a contraction of 18.2% y/y. During the month, 507 light commercial vehicles, 18 medium commercial vehicles and 19 heavy commercial vehicles were sold. On a year-on-year basis, light commercial sales have declined by 15.5%, medium commercial sales contracted 28% and heavy and extra heavy sales have declined by 51.3%. On a twelve-month cumulative basis, commercial vehicle sales remain depressed with light commercial vehicle sales decreasing by 17.9% y/y, medium commercial vehicle sales declining 0.4% and heavy commercial vehicle sales dropping by 4.9% y/y.

Year-to-date, Toyota and Volkswagen continue to hold a strong market share in the passenger vehicle market based on the number of new vehicles sold, claiming 36.4% and 28.5% of the market respectively. They were followed by Hyundai and Kia at 5.4% and 4.7% respectively, while the rest of the passenger vehicle market continues to be shared by several competitors.

Toyota also remains the leader in the light commercial vehicle space with a 58.0% market share, with Nissan in second place with a 16.3% share. Ford and Isuzu claimed 7.6% and 6.0% of the number of light commercial vehicles for the year, respectively. Hino leads the medium commercial vehicle category with 43.3% of sales while Scania remains number one in the heavy and extra-heavy commercial vehicle segment with 23.3% of the market share year to date.

The Bottom Line

The outlook for new vehicle sales remains bleak with the cumulative number of new vehicle sales as at the end of May amounting to 12,438, representing a decline of over 45% from the peak of 22,664 new vehicle sales recorded in April 2015. Year-on-year, the cumulative number of new vehicles sold have contracted by 16.1% from the 14,822 cumulative sales recorded in May 2017. Preliminary national accounts released by the Namibian Statistics Agency (NSA) estimates that the Namibian economy contracted by 0.8% in 2017. New vehicle sales statistics are a lagging indicator, acting as a proxy of the depressed economic conditions present at moment. Reduced government spending, on capital assets in particular, continues to have an effect on the number of new vehicles sold. Tighter credit controls have further curbed consumer’s access to credit financing normally used for new vehicle purchases. The year-on-year decline in new vehicle sales further suggests that vehicle owners are holding on to the vehicles they already own. The Bank of Namibia today announced that the MPC decided to keep the repo rate unchanged, which means consumers and businesses alike will not be provided any reprieve in lowering their current debt servicing cost.

825 New vehicles were sold in April, which represents a 27.8% m/m decrease from the 1,142 vehicles sold in March, and is down 14.0% from April 2017 when 959 vehicles were sold. Year-to-date 3,886 vehicles have been sold of which 1,829 were passenger vehicles, 1,888 light commercial vehicles, and 169 medium and heavy commercial vehicles. On a twelve-month cumulative basis, vehicle sales continue to wither with a total of 12,675 new vehicles sold as at April 2018, down 16.6% from the 15,202 sold over the comparable period a year ago, and the lowest since January 2012.

A total of 373 new passenger vehicles were sold during April, decreasing by a substantial 27.9% m/m and 8.8% y/y. Year-to-date passenger vehicle sales rose to 1,829, reflecting lower sales than the preceding five years and a 9.4% decline from April 2017. On a rolling 12-month basis, passenger vehicle sales are at their lowest level since December 2011.

Commercial vehicle sales have declined to 452 units, representing a 27.7% m/m and 17.8% y/y contraction. During April, 397 light commercial vehicles, 25 medium commercial vehicles, and 30 heavy commercial vehicles were sold. On an annual basis, light commercial vehicle sales have declined by 21.4%, medium commercial sales, however, increased by a staggering 78.6%, while heavy and extra heavy sales have contracted by 3.2%. On a twelve-month cumulative basis, light commercial vehicle sales remain depressed, decreasing by 18.9% y/y, while medium commercial vehicle sales increased by 5.9% y/y and heavy commercial vehicle sales increased by 1.1% y/y.

Year-to-date, Toyota and Volkswagen continue to maintain their strong hold on the passenger vehicle market based on the number of new vehicles sold, claiming 37.1% and 28.0% of the market respectively. They were followed by Hyundai and Mercedes at 5.2% and 4.7% respectively, while the rest of the passenger vehicle market continues to be shared by several competitors.

Toyota also remains the leader in the light commercial vehicle space with a 58.1% market share, with Nissan in second place with a 15.3% share. Ford and Isuzu claimed 8.1% and 6.6% of the number of light commercial vehicles for the year, respectively. Hino leads the medium commercial vehicle category with 40.3% of sales while Scania remains number one in the heavy and extra-heavy commercial vehicle segment with 22.7% of the market share year to date.

The Bottom Line

Cumulative vehicle sales continue to contract on a rolling 12-month basis, and year-to-date figures are hovering around 2011 levels.