Vehicle sales increase by 11.3% in May
A total of 918 new vehicles were sold in May, representing an 11.3% increase from the 825 vehicles sold in April, according to IJG research firm.
However, this new figure is 20.5% lower than in May 2017 when 1,155 new vehicles were sold. Year-to-date 4,804 vehicles have been sold of which 2,203 were passenger vehicles, 2,395 light commercial vehicles, and 206 medium and heavy commercial vehicles, IJG added.
The research firm said that the outlook for new vehicle sales remains bleak with the cumulative number of new vehicle sales as at the end of May amounting to 12,438, representing a decline of over 45% from the peak of 22,664 new vehicle sales recorded in April 2015.
“New vehicle sales statistics are a lagging indicator, acting as a proxy of the depressed economic conditions present at moment. Reduced government spending, on capital assets in particular, continues to have an effect on the number of new vehicles sold,” IJG explained.
In contrast, tighter credit controls have further curbed consumer’s access to credit financing normally used for new vehicle purchases.
“The year-on-year decline in new vehicle sales further suggests that vehicle owners are holding on to the vehicles they already own,” IJG said.
Meanwhile, the Bank of Namibia this week announced that the monetary policy committee decided to keep the repo rate unchanged, which means consumers and businesses alike will not be provided any reprieve in lowering their current debt servicing cost.
Caption: Year-to-date, Toyota and Volkswagen continue to hold a strong market share in the passenger vehicle market based on the number of new vehicles sold, claiming 36.4% and 28.5% of the market respectively. They were followed by Hyundai and Kia at 5.4% and 4.7% respectively, while the rest of the passenger vehicle market continues to be shared by several competitors.