Category Archives: Vehicle Sales

881 New vehicles were sold in January, which represents a 5.6% m/m increase from the 834 sold in December. This is however 0.5% lower than the 885 new vehicles sold in January 2017. From a rolling 12-month basis, a total of 13,195 new vehicles were sold at January 2018 representing a contraction of 17.8% from the 16,043 sold over the same period in 2017 and as illustrated below, 2018 is getting off to a slow start.

A total of 427 new passenger vehicles were sold during January, increasing by 14.8% m/m and 10.6% y/y. January 2018 has so far registered a better start to the year. The previous two years have both recorded a y/y and m/m decline. Passenger vehicle sales have been impacted in large by amendments to the Credit Act that requires tighter credit conditions, as well as by reduced government expenditure and depressed consumer confidence in the current economic climate.

Commercial vehicle sales declined to 454 units, a 1.7% m/m, and 9.0% y/y contraction. For January, 427 light commercial vehicles, 14 medium commercial vehicles, and 13 heavy commercial vehicles were sold. On a year on year basis light commercial sales have declined by 9.1%, medium commercial sales started the year as they did in 2017 and heavy and extra heavy sales have decreased by 13.3%.

Toyota is starting off 2018 with a firm grasp on the market for new vehicle sales with a 43% share of the passenger vehicle market followed by Volkswagen with 19%. Toyota also remained the leader in the light commercial vehicle space with a 62% market share with Nissan in second place with a 11% share.

The Bottom Line

Cumulative new vehicle sales have been on the decline since December 2015 and continues its downward trend in January to its lowest level since March 2012. The current recessionary environment coupled with the reduction in government spending is further highlighted by depressed business and consumer confidence. Tighter credit controls have limited the amount of credit available that is used to finance vehicle purchases, slowing private credit extension, particularly instalment credit, proves as testament to the decline. Lower levels of capital expenditure from corporates remains worrisome, while relief for business and consumers alike rest on the renewed optimism in SA, now under new leadership, which might well avoid a ratings downgrade and possibly opening the door to a rate cutting cycle.

835 New vehicles were sold in December, a decrease of 18.9% m/m and 20.6% y/y. Year-to-date 13,202 new vehicles have been sold, a 20.1% decrease from December last year, the lowest annual vehicle sales figure since 2011. New vehicle sales are now down 41.7% from their peak, reflecting the pressures on corporates, individuals, as well as government in the recessionary environment that Namibia finds itself in. While the figures above are likely to change over the next few months as the data improves, it is unlikely that much upward revision can be expected.

A total of 373 new passenger vehicles were sold during December, down 7.9% m/m and 11.6% y/y. Year-to-date passenger vehicle sales rose to 5,590, reflecting lower annual sales than the preceding five years and a 18.8% decline from December 2016. Passenger vehicle sales have slowed dramatically as a result of tighter credit conditions, depressed government expenditure and low consumer confidence in the current economic climate. On a rolling 12-month basis new passenger vehicle sales were down 43.1% from the peak in April 2015.

Commercial vehicle sales declined to 462 units, a 26.0% m/m, and 26.6% y/y contraction. Year-to-date commercial vehicles sales are down 21.1%, and down 40.7% from the peak. For December, 402 light commercial vehicles, 11 medium commercial vehicles, and 49 heavy commercial vehicles were sold. On a year to date basis light commercial sales have declined by 22.3%, medium commercial sales are down 13.9% and heavy and extra heavy sales have decreased by 1.5%.

Toyota continued to lead the market for new vehicle sales in 2017 with 35.8% of the passenger vehicle market followed by Volkswagen with a 24.8% share. Toyota also remained the leader in the light commercial vehicle space with a 49.9% market share with Nissan in second place with a 16.8% share. In the medium commercial section of the market Hino led the pack with a 35.9% market share followed by Iveco at 25.1%. The heavy and extra heavy category was dominated by Scania with 36.3% of new vehicle sales.

The Bottom Line

Cumulative new vehicle sales fell to the lowest level in five years on a rolling 12-month basis. This is a consequence of the recessionary environment we find ourselves in, characterised by depressed business and consumer confidence, as well as lower government spending. Tighter credit conditions and indebted consumers further hampered new vehicle sales. The continued slowdown in commercial vehicle sales remains worrisome as this is an indication of lower capital expenditure by corporates and lower business confidence in general. While vehicle sales may not drop much further, a rapid recovery in these metrics will only be seen once government resumes normal expenditure patterns and business confidence improves. While the latter may have bottomed out, there is still great uncertainty regarding the former.

1,058 New vehicles were sold in November, a decrease of 3.8% m/m and 18.1% y/y. Year-to-date 12,435 new vehicles have been sold, a 19.6% decrease from November last year. On a cumulative 12-month basis 13,486 new vehicles have been sold, the lowest level since March 2013. This represents a decline of 20.9% from November 2016 and a decline of 40.5% from the peak 12-month cumulative number of vehicles sales in April 2015. The trend of slowing vehicle sales continues unabated reflecting the pressures on corporates and individuals in the recessionary environment Namibia finds itself in.

A total of 415 new passenger vehicles were sold during November, down 8.2% m/m and 18.5% y/y. Year-to-date passenger vehicle sales rose to 5,243, reflecting lower annual sales than the preceding five years and a 18.8% decline from November 2016. On a rolling 12-month basis, passenger vehicle sales are at their lowest level since March 2012, highlighting the severity of the slowdown.

Commercial vehicle sales display the same trend, declining 20.2% year-to-date and 21.6% on a rolling 12-month basis. A total of 643 new commercial vehicles were sold in November, which were made up of 564 light-, 30 medium-, and 49 heavy and extra heavy commercial vehicles. Year to date 7,192 new commercial vehicles have been sold. On a year to date basis light commercial sales have declined by 21.1%, medium commercial sales are down 12.4% and heavy and extra heavy sales have decreased by 8.3%.

Toyota continues to lead the market for new vehicle sales in 2017 with 35.2% of the passenger vehicle market followed by Volkswagen with a 24.9% share. Toyota also remains the leader in the light commercial vehicle space with a 49.4% market share with Nissan in second place with a 16.6% share. In the medium commercial section of the market Hino leads the pack with a 36.3% market share followed by Iveco at 26.4%. The heavy and extra heavy category is dominated by Scania with 35.7% of new vehicle sales.

The Bottom Line
Cumulative vehicle sales continue to contract on a rolling 12-month basis, and year-to-date vehicle sales figures are hovering around 2013 levels. This is a consequence of the recessionary environment we find ourselves in, characterised by depressed business and consumer confidence, as well as lower government spending. Tighter credit conditions and the possibility of higher interest rates coupled with indebted consumers have also hampered new vehicle sales. The continued slowdown in commercial vehicle sales remain worrisome as this is an indication of lower capital expenditure by corporates and lower business confidence. It remains unlikely that vehicle sales will recover anytime soon as the current business environment does not show any signs of reprieve.