By: Justicia Shipena
Some local dealerships still indicate that a large share of customers are seeing their car loan applications rejected.
This is according to the latest Simonis Storms report on vehicle sales.
Meanwhile, the report also states that vehicle sales slightly slowed in September 2022, decreasing by 3.2 percent.
“But rising by 32.47 percent on an annual basis according to the National Association of Automobile Manufacturers of South Africa (NAAMSA),” the report reads.
It revealed that a total of 1,018 units were sold during September 2022, compared to 1,052 units in August 2022 and 767 in September 2021.
Simonis Storms says commercial vehicles recorded the highest annual increases in units sold during September 2022.
This, they say, is indicating potential growth in the road cargo segment of the transport sector.
“This was the best September in terms of vehicle units sold since 2019. Overall, YTD vehicle sales are trending above levels seen in the last two years. This is despite Namibia being in an interest rate hiking cycle,” said the report.
It is in the view of economist researchers at Simonis Storms that some of the local banks perceive car loans as a higher risk in the current economic environment.
“This has constrained vehicle sales in recent months.”
The report states that household installment credit has been lackluster, averaging 0.9 percent YTD whereas corporate installment credit has recorded double-digit growth in recent months.
“This is in line with increases in commercial vehicle sales that we have observed during the same time.”
In September Toyota, Volkswagen, Ford, Nissan, and KIA were the top brands in the market share of vehicles sold.
These five brands accounted for 72.3 percent of all vehicles sold in September 2022.
“However, other brands with lower market shares recorded higher annual growth rates in units sold during September 2022.”
Moreover, local car rental companies purchased 162 vehicles during Namibia’s peak tourist season.
“This is compared to 240 vehicles bought in September 2021. This is indicative of major global supply constraints still limiting available stock at local dealerships as we know that there is significant demand from rental companies who want to expand their fleet. High demand stems from a significant improvement in tourist inflows during this year.”
