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New vehicle sales market to remain mute
New vehicle sales market to remain mute

New vehicle sales market to remain mute

Customers who have paid deposits are still waiting for their new cars to be delivered in Namibia since early this year.
Phillepus Uusiku
PHILLEPUS UUSIKU

Due to global supply constraints, leading to shortage of stock locally, resulted in 714 new vehicles being sold in October 2021, the second lowest monthly sales figures for 2021.

According to IJG Securities, fewer passenger vehicles, light commercial vehicles and heavy commercial vehicles were sold in October than in September. Only the number of medium commercial vehicles sold increased, from 16 in September to 22 in October. Year-to-date, a total of 7 935 new vehicles have been sold. Despite the low monthly sales figure, new vehicle sales increased by 27.3% year-on-year in October.

356 new passenger vehicles were sold in October, 24 fewer than in September. This translates to a 6.3% month-on-month decrease, but a 19.5% year-on-year increase. On a 12-month cumulative basis, new passenger vehicle sales have increased by 38.0% year-on-year to 4 414. Despite being a somewhat weaker month for passenger vehicle sales, October’s sale figure is not far off the average monthly sales figure for the past 12 months, IJG pointed out.

Total commercial vehicle sales declined by 7.5% month-on-month but increased by 36.1% year-on-year in October. The biggest month-on-month decline in both absolute number and percentage terms came in the heavy commercial vehicles category. The 41 heavy commercial vehicles sold is 26 fewer than in September, representing a 38.8% month-on-month decrease in sales. Light commercial vehicle sales followed a similar pattern. 295 light commercial vehicle sales in October translates to a 3.0% month-on-month decrease, but 35.9% year-on-year increase in sales. 22 medium commercial vehicles were sold in October, an increase of 37.5% month-on-month and 22.2% year-on-year, IJG said.

Productions

According to Simonis Storm Securities, Toyota, Japan’s biggest carmaker, has cut global production for November by as much as 15% between 100 000 and 150 000 cars, where company representatives blame the ongoing global shortage of microchips used in the production of vehicles.

Toyota cut production in September and October as well, with shortages in components dragging car production lower during these months. Component shortages resulted from Covid-19 infections amongst factory staff and lockdown related restrictions in Malaysia and Vietnam which lowered their production.

The company still targets to produce 9 million Toyota cars for the year ending 31 March 2022. Toyota Namibia has seen an increase in its backlog from 300 to 350 vehicles, Simonis Storm said.

“In 2021, Volkswagen celebrated 70 years of production in South Africa, where the first vehicle to roll off the Uitenhage production line was a Beetle in 1951. Similarly, to other brands globally, the manufacturing plant in Uitenhage is experiencing a production backlog, implicating our local dealerships in Namibia. Imports of Volkswagen models are delayed due to the shortage of cargo ships and containers, leading to local dealerships taking a cutback on their allocated orders,” Simonis Storm added.

Market expectations are that constrained supply of new vehicles will remain unchanged until mid-next year. One of the local Volkswagen dealerships has a short supply of most model ranges for both passenger and commercial ranges, resulting in market share loss as some customers opt to take what is available elsewhere and do not want to wait for imports to arrive.

In terms of pricing, Volkswagen has seen price increases every three months between 1.5% to 2% on average in Namibia during 2021. On average, about 40% of Volkswagen vehicle sales are company purchases, 60% being private purchases and about 33% are financed with cash deals, 67% are financed by loans, Simonis Storm said.

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Allgemeine Zeitung 2024-11-23

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