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NamibiaÔÇÖs vehicle sales keep rising

Mon, 4 November 2013 04:44
by Honorine Kaze
Business

For the past four years, the number of new sold vehicles has constantly risen by 17.3% on a yearly basis, albeit with unstable quarter-to-quarter performance, with 2012 recording a 10% increase from 2011; Bank of Namibia (BoN)’s quarterly bulletin states.
In 2009 alone, sold vehicles amounted to over 10 000 units, compared to the 10% increase of 13 692 recorded in 2012.
This year, the number of new sold vehicles has increased quarter-on-quarter, partly due to the motor show promotions, coupled with Government purchases and increased disposable incomes.
On a yearly basis, states the bulletin, the number of new sold vehicles has risen by 17.3% to 4 057 units, driven by passenger and light commercial vehicle sales, while that of heavy and medium commercial vehicle sales has declined over the same period. On a quarterly basis, the number of new sold vehicles has increased by 30.2% from 3 117 units sold during the preceding quarter. The rise has been registered in all vehicle categories, with the exception of heavy commercial vehicles, which have recorded a decline in sales over the period under review.
Besides motor promotional shows and Government purchases, the tax relief announced in the 2013/14 financial budget may have had a positive impact on vehicles sales. By June, BoN figures already showed total vehicle loans made by commercial banks standing at N$8.2b.
But according to figures released by the National Association of Automobile Manufacturers of South Africa (NAAMSA) in September, Namibia’s new sold vehicles stand at 12 200 units, translating into a year-on-year growth of 27.8%, representing the highest yearly growth ever recorded.
On a monthly basis, figures show a slight increase of 0.6% to 1 520 units sold in Namibia. The passenger vehicle sale represents 48%, standing at 755 units sold from 643 in August, which was a decline from the preceding month.
Light commercial vehicles represent 49% of the September figures, with 694 units sold. This category kept an upward trend from the month of May where 623 units were sold, to 685 in June, 734 in July and 761 in August.
On the other hand, heavy vehicles recorded a sharp decline from 67 vehicles in August to only 28 units in September.
Although the recent labour strikes experienced in South Africa had been forecast to highly impact vehicle sales in Namibia, Simonis Storm Securities (SSS) analyst, Daniel Kavishe, points out in their latest report - ‘Namibia’s New Vehicles Sold’ - it has only had a moderate effect.
“The purchase of new vehicles remains well above the monthly average, suggesting that our forecasts for the overall year-end values have been revised upward. The strikes, which mainly seem to be affecting the availability of parts, may have been offset in Namibia by sheer consumer demand,” highlights Kavishe in his report.