New vehicle sales in first gear
For the year ended August, sales of new vehicles were down 13% compared to the same 12 months in 2017.
Jo-Maré Duddy – August marked the first month this year that overall sales of new vehicles in Namibia grew on an annual basis.
It was also the second consecutive month of positive year-on-year growth in the sales of new passenger, medium commercial and heavy commercial vehicles.
A total of 1 061 new vehicles were sold last month, 1.7% more than August 2017, IJG Securities’ analysis of the latest figures shows.
However, for the 12 months ended August, the total number of new vehicles sold was still 13.1% less than the comparative period in 2017. A total of 12 031 units were sold in the latest 12 months, 1 817 down from the cumulative 12-month figure in August 2017.
Compared to the heyday of new vehicles sales in April 2015, when 12-month cumulative sales figures reached a record 22 664, August’s sales fell 47% short.
Imports
The latest data by the Namibia Statistics Agency (NSA) shows the country imported N$3.898 billion worth of vehicles in the first six months of 2018. This is N$438 million or 10% less than the same half-year in 2017. Of the nearly N$4 billion worth of vehicles imported so far this year, vehicles totaling N$644 million were re-exported, up nearly 8.1% from the same period in 2017.
The bulk of vehicles and parts thereof imported during the past half-year came from South Africa. About N$3.3 billion worth of vehicles and parts were imported from South Africa, compared to around N$3.5 billion in the first six months of 2017.
Other vehicle import markets during the period under review include the United Kingdom (N$164 million), Botswana (N$55 million) and China (N$36 million).
Outlook
The outlook for new vehicle sales remains bleak, says IJG Securities.
“Factors such as fiscal consolidation, low consumer and business confidence, expected fuel price increases, coupled with an increasing likelihood of interest hikes over the next 24 months, mean that no significant recovery in vehicle sales can be expected over the short to medium term,” the analysts say.
Simonis Storm (SS) says “it continues to be a tough year for the vehicle industry and we do not see this picture reverting over the short term”. However, with elections next year and holiday season approaching in December, the analysts expect a “slight uptick” in the vehicle numbers.
“We do not foresee spectacular jumps in the units of new vehicle sales in the near future as the economy fails to continue delivering required growth rates,” SS says.
The latest inflation figures from the NSA show inflation for the purchase of vehicles at 7.9% in August, up from 6.7% the previous month and the second highest so far this year. In August 2017, the rate was 4.2%.
It was also the second consecutive month of positive year-on-year growth in the sales of new passenger, medium commercial and heavy commercial vehicles.
A total of 1 061 new vehicles were sold last month, 1.7% more than August 2017, IJG Securities’ analysis of the latest figures shows.
However, for the 12 months ended August, the total number of new vehicles sold was still 13.1% less than the comparative period in 2017. A total of 12 031 units were sold in the latest 12 months, 1 817 down from the cumulative 12-month figure in August 2017.
Compared to the heyday of new vehicles sales in April 2015, when 12-month cumulative sales figures reached a record 22 664, August’s sales fell 47% short.
Imports
The latest data by the Namibia Statistics Agency (NSA) shows the country imported N$3.898 billion worth of vehicles in the first six months of 2018. This is N$438 million or 10% less than the same half-year in 2017. Of the nearly N$4 billion worth of vehicles imported so far this year, vehicles totaling N$644 million were re-exported, up nearly 8.1% from the same period in 2017.
The bulk of vehicles and parts thereof imported during the past half-year came from South Africa. About N$3.3 billion worth of vehicles and parts were imported from South Africa, compared to around N$3.5 billion in the first six months of 2017.
Other vehicle import markets during the period under review include the United Kingdom (N$164 million), Botswana (N$55 million) and China (N$36 million).
Outlook
The outlook for new vehicle sales remains bleak, says IJG Securities.
“Factors such as fiscal consolidation, low consumer and business confidence, expected fuel price increases, coupled with an increasing likelihood of interest hikes over the next 24 months, mean that no significant recovery in vehicle sales can be expected over the short to medium term,” the analysts say.
Simonis Storm (SS) says “it continues to be a tough year for the vehicle industry and we do not see this picture reverting over the short term”. However, with elections next year and holiday season approaching in December, the analysts expect a “slight uptick” in the vehicle numbers.
“We do not foresee spectacular jumps in the units of new vehicle sales in the near future as the economy fails to continue delivering required growth rates,” SS says.
The latest inflation figures from the NSA show inflation for the purchase of vehicles at 7.9% in August, up from 6.7% the previous month and the second highest so far this year. In August 2017, the rate was 4.2%.
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