Category Archives: Vehicle Sales

A total of 1,845 new vehicles were sold in Namibia during June. New vehicle sales fell by 8.8% year on year, although this is due to the high base set last year. On a year to date basis new vehicle sales grew by 4.6% to 11,003, therefore still on track for a record year. The 12 month cumulative measure of new vehicles sold fell for a second month, down from 22,611 in May to 22,434 in June, largely due to the high base set in June 2014.

Passenger vehicle sales rebounded 23.1% on a month on month basis after falling 15.4% last month. On a year to date basis sales of new passenger vehicles rose 3.7% to 4,986 vehicles sold, the highest figure on record. Year on year sales of new passenger vehicles grew by 1.5%, up from -3.8% last month. A total of 906 new passenger vehicles were sold during June, four vehicles short of the highest figure on record.

On a month on month basis new commercial vehicle sales rebounded 8.3% with a total of 939 vehicles driving off the showroom floors. The total number of new commercial vehicles sold for the year has increased by 5.3% to 6,017, on track for a record year. Sales of new light commercial vehicles jumped 9.4% month on month, although dropping 15% year on year, due to a high base in June last year. Sales of medium commercial vehicles rose by 20% over last month while sales of heavy commercial vehicles fell by 10.5% on a month on month basis. Both these metrics are on track for record sales on a yearly basis with record year to date figures.

The Bottom Line

Current year to date vehicle sales are at record levels for all classes measured. This is a sign of positive consumer sentiment and indicative of a growing economy. A strong consumer base supported by expansionary fiscal policy and real wage growth should see the growth trend continue, although at a slower pace due to an elevated base set last year.

A total of 1,603 new vehicles were sold in Namibia during May. This constitutes the lowest new vehicle sales figure since January 2014. Sales fell 3.3% year on year after growing by 4.4% year on year in April. On a month on month basis sales of new vehicles fell by 8% although year to date sales set a record high with 9,148 new vehicles sold during the first five months of 2015.

The 12 month cumulative measure decreased to 22,611 from 22,664 in April, the first such decrease in 30 months. The magnitude of the decrease is very slight and does not indicate a material decline in the rate of growth of new vehicle sales.

Sales of passenger vehicles decreased by 15.4% month on month during May after sliding 4.4% month on month in April. On a year to date basis 4,080 new passenger have been sold eclipsing last year’s figure of 3,913. Once again Toyota and Volkswagen made up the bulk of new passenger vehicle sales, contributing 61% to the total, down from 70% in April. The roles have reversed however with Volkswagen outselling Toyota for the first time since June last year.

Total new commercial vehicle sales dropped a further 0.6% month on month in May after falling 29.7% in April. On a year to date basis the trend continues with record new commercial vehicle sales being recorded once again in May despite the comparatively poor figures recorded in April and May. Sales of new light commercial vehicles rose by 1.7% month on month, the only subsector to record an increase on a month on month basis. Sales of new medium commercial vehicles fell 45.9% month on month, with a total of 20 vehicles leaving the showroom floor. 57 new heavy commercial vehicles were sold during May, one less than in April. Sales of medium and heavy commercial vehicles on a month on month basis tend to be inconsistent and thus are not always indicative of the bigger picture. Both these categories have recorded record sales on a year to date basis during 2015 thus far.

The Bottom Line

Recent relative weakness in new vehicle sales can largely be attributed to the high base set during the first three months of 2015. The cumulative year to date figures convey a truer picture, with all subcategories posting record sales. A strong consumer base supported by expansionary fiscal policy and real wage growth should see the growth trend continue, although at a slower pace due to an elevated base.

1,742 new vehicles were sold in Namibia during April, after record sales of 2,150 in March. Sales rose 4.4% y/y coming off a high base as both March 2015 and April 2014 saw elevated sales levels. Month on month vehicle sales fell by 19.0% after being up 10.4% in March. The lower monthly numbers, compared to March, were on account of a 29.7% decrease in commercial vehicle sales and a 4.4% decline in passenger vehicle sales. At this point, total sales for the year stand at 7,555 vehicles, up 10.4% on the comparable period of 2014.

The 12-month cumulative measure increased further to 22,664 and is now 23.8% higher than a year ago, up 0.3% from the previous month. In our view the growth in the 12-month cumulative number is largely a result of a lower base in the previous year.

Sales of passenger vehicles decreased by 4.4% m/m to 870 vehicles sold during the month, down from the previous month’s 10.8% increase. On an annual basis, passenger vehicle sales rose, increasing 8.3% y/y after increasing 0.2% in March. Commercial vehicle sales fell 29.7% to a sales figure of 872 vehicles, down from 1,240 sold in March. On an annual basis, commercial vehicle sales continued to increased, up by 0.8% in April, which was due to higher sales numbers of light commercial vehicles on the back of government tenders coming through.

Once again Toyota and Volkswagen dominated the passenger vehicle market, claiming almost 60% between them. 33.4% of all passenger vehicles sold during April were Toyotas while Volkswagen made up 26.0% of the market. Toyota once again was the market leader in light commercial vehicles, having the lion’s share of sales at 43.8% of the market, followed by Nissan at 17.9%, and Ford in 3rd place.

The Bottom Line

The strong increase in vehicle sales is attributed to a number of factors, namely the on-going expansive fiscal and monetary positions of the Ministry of Finance and Bank of Namibia, as well as purchase of vehicles by Government.

Continued spending by the mining sector has helped drive vehicle sales during the past year while real wage growth and the strong local economy have bolstered sales. The strong state of the Namibian consumer can thus be well illustrated by vehicle sales figures. However as no cars are manufactured in Namibia, all new vehicles sold must be imported. Given the small, open, nature of the Namibian economy, this puts major pressure on the country’s balance of payments, which pressure cannot be sustained long-term.April vehicle sales are expected to be lower than March due in part to the high base and historically April sales are softer.