Vehicle sales show slight increase

In May, vehicle sales in Namibia reached 966 units, marking 7.5% month-on-month increase from the 899 units sold in April. However, this figure represents a slight decline compared to the 982 units sold in May 2023. Commercial vehicles continue to drive sales in the market, according to a vehicle sales report by Simonis Storm Securities.

By the end of April, corporate instalment and leasing credit uptake has averaged 24.5% year-to-date, while household instalment and leasing credit uptake has averaged 6.1% year-to-date, it read.

Of the 966 vehicles sold in Namibia during May, dealerships accounted for 921 units, while rental agencies acquired 45 units, representing a modest 4.7% of the total sales. Specifically, rental agencies purchased 10 Toyota Hilux bakkies in the light commercial vehicles segment, alongside 20 Volkswagen Polo Vivos, five Toyota Fortuners, five Toyota Corolla Quests and five Corolla Cross SUVs in the passenger vehicles category, according to Simonis Storm.

“There remains no record of vehicle sales to the government. Passenger vehicles and light commercial vehicles (LCV) remain the most significant categories, with 460 and 442 units sold respectively. Sales of passenger vehicles declined by 8.9% year-on-year (y/y) compared to the same period last year, indicating a slight decrease in consumer demand for these vehicles."

“In contrast, sales of light commercial vehicles increased by 8.1% y/y. Medium commercial vehicles experienced a decline of 31.8% y/y, with only 15 units sold in May, compared to 22 units in May 2023. In contrast, heavy commercial vehicles saw growth of 185.7% y/y, selling 20 units in May compared to seven in the previous year and four units sold last month,” it added.



Uptick

According to Simonis Storm, the increase suggests an uptick in industrial or infrastructure-related activities requiring heavier vehicles. Extra heavy vehicles experienced a decline of 33.3% y/y and only three buses were sold in May.

“The vehicle sales data reveals distinct trends across various categories, reflecting consumer preferences and market dynamics. It is evident that Toyota is the standout brand, leading in both the passenger and LCV categories. The Toyota Fortuner leads the passenger vehicles segment with 68 units sold, highlighting its popularity in the market for larger, versatile vehicles," the report read.

The Toyota Hilux emerged as a top performer in the light commercial vehicles category, with 165 units sold in May, showcasing its strong appeal among buyers seeking robust utility and reliability.

Meanwhile, in the medium commercial vehicles category, the Mercedes-Benz Sprinter recorded five units sold and 12 UD Trucks in the heavy commercial vehicle category. Additionally, the Scania G-Series attracted attention in the extra heavy vehicles category with six units sold.