Vehicle sales fall by 12.8% in July
The month of July recorded about 1,346 sold vehicles, bringing down the overall sales to 12.8% from the 1,544 new vehicles sold in July 2016, and a 10.3% month on month increase on the 1,220 vehicles sold in June.
According to research firm, IJG Namibia, the sluggish sales of the vehicles continues on almost the same trend as in 2016, showing some positive signs before trending downwards midway through the year.
IJG Namibia noted that continued fiscal tightening, evident through lower government spending on capital assets, slower economic growth, waning consumer discretionary income as well as the credit agreement act have been the main impediments on new vehicles sold.
“Positive heavy vehicle sales figures in June have this month been supported by encouraging sales data for light commercial vehicles, though overall vehicle sales for 2017 remain under pressure. While there has been a sizable increase in total vehicle sales since April this year, year-to-date and year-on-year data is still depressed compared to previous years,” the firm stated.
Year to date, 8,178 vehicles have been sold, 22% less than the corresponding period in 2016. Of the 8,178 vehicles sold this year, 3,578 were passenger vehicles, 4,198 were light commercial vehicles, and 402 were medium or heavy commercial vehicles.
Meanwhile, installment credit, which is mainly used to finance vehicle purchases, has slowed considerably. Installment credit advances contracted by 0.7% y/y in June, entering negative territory for the first time in our database.