By: Nghiinomenwa-vali Hangala
Citizens, including companies, bought more cars last year, showing one of the strongest performances since 2015.
This is according to insights from Bank Windhoek’s Regional Manager for the Far North, Mire Christof, in her keynote address at the Bank-sponsored Northern Motoring Industry Awards last week.
She noted that Namibia recorded 14,494 vehicle sales in 2025, the strongest performance since 2015, with this momentum continuing into this year.
Citizens and companies bought 1,005 units sold in January, marking the best January since 2016, and a 4% year-on-year increase.
In February 2026, the acceleration continued with a total of 1,165 units sold during the month, up 4.1% year-on-year from 1,119 units in February 2025 and 15.9% higher than January’s 1,005 units.
According to Christof, the statistics highlight a strong demand in the north for tough, practical vehicles such as pickup trucks (bakkies), Sport Utility Vehicles (SUVs), and commercial vehicles, used for farming, transport, construction, and cross-border trade.
Another trend observed is that small businesses are also procuring vehicles, which, according to Christof, is a sign of operational growth.
“More small businesses are taking vehicle finance to grow their operations and create jobs, and customers also want faster, easier service through digital finance tools,” shared Christof.
She added that affordability improved after the Bank of Namibia lowered the repo rate to 6.5% in late 2025 and kept it there into early 2026.
Looking ahead, Christof said infrastructure development and expanding regional trade is expected to support demand for reliable transport solutions.
She also reiterated the need for disciplined risk management as household budgets and business costs remain under pressure, including global developments affecting fuel prices.
Christof highlighted key priorities for the year ahead, including expanding access to financing, strengthening affordability, and deepening partnerships across Northern Namibia, so that solutions reflect local realities and deliver a better customer experience.
Vehicle sales are one of the economic indicators painting a picture of how the economy is fairing through the purchases of various vehicles by individuals and companies.
Vehicle purchases are mostly financed by commercial banks, and Bank Windhoek maintained a leading market share in vehicle financing.
Insights from Simonis Storm highlighted that vehicle demand continues to be driven by logistics, mining, agriculture, and energy-related services; sectors reflecting Namibia’s resource-oriented growth model.
Also sharing predictions of the future, Simonis Storm predicted that the activity linked to the construction of new uranium, gold, and copper mines, plus offshore oil and gas exploration, could become a meaningful tailwind for medium and heavy-duty commercial vehicle demand.
Especially if final investment decisions begin to convert into on-the-ground execution in the coming quarters, the company noted.
erastus@thevillager.com.na
