Consumers cautious in buying new vehicles

PHILLEPUS UUSIKUNew vehicle sales in July 2021 contracted 5.1% month-on-month but increased 20.1% year-on-year. This growth should be taken in light of the fact that the country had a stringent stage 3 lockdown during the corresponding period in 2020, Cirrus Capital (CC) said.Therefore, when comparing year to date (YTD) sales to 2019 figures, new vehicles sale decreased by -11.5%, amounting to 800 new vehicles sold in July 2021.The total YTD vehicle sales increased significantly from 2020, as the Covid-19 restrictions placed throughout the year have not been as stringent. In comparison to 2019, YTD total sales decreased by 13.7%. Although new vehicle sales have improved compared to 2020, the absolute volumes are still at a decade low and the outlook is tempered by weak economic growth, the high unemployment, high household indebtedness.Commercial vehicle sales saw decreases on both a monthly and annual basis, with respective declines of 0.5% and 6.4%, amounting to 411 vehicles sold. New passenger vehicle sales decreased 9.5% month-on-month, but increased 71.4% year-on-year, amounting to 389 new vehicles, CC pointed out.Constraints The ongoing global constraints facing semiconductor chips plague the manufacturing of new vehicle sales markets as these chips are an integral input into new vehicles, leaving some factories idle. Moreover, the lockdown restrictions in Namibia with the recent ‘third wave’ from June and into July 2021 July contributed to subdued demand. However, vehicle sales have improved compared to last year as Covid-19 regulations have been somewhat less prohibitive and some consumers are taking advantage of historically low interest rates.On a positive note, there were purchases by rental companies after de-fleeting last year, indicative of increased bookings for later in 2021, CC said.Also commenting on the figures, Simonis Storm (SS) notes that customers remain cautious in spending. “Customers make use of the 72-month car loan product as it increases the affordability of cars. We standardized the number of vehicles sold per selected brands to see how different brands recovered since the Covid-19 pandemic outbreak. We note that BMW, Suzuki, Haval and Isuzu made the fastest recovery. Affordable brands have made better comebacks compared to premium brand.”

Consumers cautious in buying new vehicles

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Republikein 2025-08-28

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Consumers cautious in buying new vehicles

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Republikein 2025-08-28

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