Vehicles sales slump
The National Association of Automobile Manufacturers of South Africa (NAAMSA) this week released Namibia’s September car sales, the lowest recorded vehicle sales since December 2013.
New vehicle sales are the lowest since 1,190 units recorded in December 2013. The new vehicle sales for September contracted by 8.5% month to month to 1,252 units compared to a 12.8% shrinkage recorded in the prior month.
Vehicle sales are expected to continue on a downward trend due to structural issues within the country. “The implementation of fuel levy rates by the Ministry of Finance coupled with the Carbon emission tax and slowing Private Sector Credit Extension (PSCE) will continue to subdue vehicles sales in the country.” The association said.
On an annual basis, total vehicle sales contracted by 23.9% compared to 13.9% registered in the prior year. The monthly contraction in vehicle sales are attributed to a decline across all vehicle categories.
The decline in new vehicle sales can be attributed to a contraction in Passenger Vehicle sales which contracted by 5.2% month to month to 509 units in September 2016. Light Commercial Vehicles continued on a downward trend for three consecutive months and has contracted by 10.1% month to month to 684 units in September 2016.
Furthermore, Medium Commercial and Extra Heavy Vehicles also declined by 27.6% and 10.3%, respectively in September 2016 to 21 and 35 units, respectively. Heavy Commercial Vehicles and Buses remained constant at 3 and 0 units, respectively. Furthermore, Passenger vehicles recorded the lowest number of units in September 2016 since 501 units in December 2011.
The suggested collective value of the new vehicle sales stood at N$498.6 million during August 2016 compared to N$567.8 million recorded in the preceding month. The value of new vehicle sales during the month under review contracted by 12.5% month to month and 21.4% year to year to N$498.6 million compared to N$631.6million in the prior year.
GDP forecast for 2016 have been revised downwards to 2.5% from 4.1% as reported in the
quarterly investment strategy for the 3rd quarter of 2016.