Category Archives: Vehicle Sales

New vehicle sales of 1,194 units were recorded in July, with sales falling by 7.0% from the 1,284 new vehicles sold in July 2017. On a month-on-month basis new vehicle sales increased by 5.3% as 60 more vehicles were sold in July than in June. Year-to-date, 7,132 new vehicles have been sold, an 11.4% decrease from the number of sales recorded in the corresponding period of 2017.  Of the 7,132 vehicles sold this year, 3,275 were passenger vehicles, 3,527 were light commercial vehicles, and 330 were medium and heavy commercial vehicles. On a twelve-month cumulative basis, a total of 12,281 new vehicles were sold as at July 2018, a decrease of 13.2% from the 14,147 sold over the comparable period a year ago. Thus on a twelve month cumulative basis new vehicle sales are still declining as the Namibian economy continues to languish.

A total of 607 new passenger vehicles were sold during July, representing an increase of 30.5% m/m and 22.4% y/y. Year-to-date passenger vehicle sales amounted to 3,275, down 7.1% compared to the number sold by July last year. The rolling 12-month vehicles sales figures continue to reflect weakness in the number of passenger vehicles sold, declining 10.3% y/y as at July 2018.

587 Commercial vehicles were sold in July, representing a 12.3% m/m and 25.5% y/y contraction. 525 light commercial vehicles, 31 medium commercial vehicles, and 31 heavy commercial vehicles were sold during the month. On a year-on-year basis, light commercial sales have declined by a hefty 29.2%, medium commercial sales increased 72.2% and heavy and extra heavy sales rose by 10.7%. On a twelve-month cumulative basis, commercial vehicle sales remain depressed with light commercial vehicle sales decreasing by 15.8% y/y, medium commercial vehicle sales remaining flat and heavy commercial vehicle sales dropping by 14.6% y/y. We prefer to look at the twelve-month cumulative figures as they give an indication of the trend in vehicle sales. For the most part this measure of new vehicle sales remains firmly in contractionary territory, with only medium commercial vehicle sales showing some evidence of having reached a turnaround point.

Year-to-date, Toyota and Volkswagen continue to hold their market share in the passenger vehicle market based on the number of new vehicles sold, claiming 37.8% and 27.1% of the market respectively. They were followed by Hyundai at 5.1% and Kia at 4.6%, while the rest of the passenger vehicle market was shared by several competitors.

Toyota also remained the leader in the light commercial vehicle space with a robust 59.8% market share with Nissan in second place with a 14.6% share. Ford and Isuzu claimed 9.2% and 5.4%, respectively, of the number of light commercial vehicles sold so far in 2018. Hino leads the medium commercial vehicle category with 43.5% of sales while Scania remains number one in the heavy and extra-heavy commercial vehicle segment with 32.2% 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 12,281 at the end of July. Year-on-year, the 12-month cumulative number of new vehicles sold has contracted by 13.2% from the 14,147 cumulative sales recorded in July 2017. While passenger vehicle sales have picked up on both a monthly and annual basis in July, commercial vehicle sales remain depressed, and overall sales remain well below the figures seen in 2015 and 2016. Low government spending on capital assets, slow economic growth and disposable income growth as well as amendments to the credit agreement act have been identified as the main impediments on new vehicle sales. These factors coupled with a weakening currency and increasing fuel prices make it unlikely that significant recovery in vehicle sales can be expected for the rest of the year.

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.