Namibia records the highest injection of new vehicles in 4 months
Namibia recorded a uptick in October’s new vehicle sales, although it was moderate, it is the highest in four months, said Investment research firm, Simonis Storm Securities (SSS) this week.
The firm’s analysis comes in the wake of the released vehicle sales in Namibia by the National Association of Automobile Manufacturers of SA, which reflect that vehicle sales increased to a four-month high of 971 units in October.
“This is a 20.5% monthly and a 6.5 % annual increase, respectively,” the association noted.
An SSS analyst said the increase in sales happened despite depressed consumer spending, low borrowing appetite, and dejected business conditions.
“We believe that the current injection of new vehicle sales is partially attributed to dealerships stocking up for “Black Friday” as well as the Namibia election on 27 November influenced the imports of new vehicles,” the firm added.
The research firm said despite the positive growth in October 2019, they believe that low growth and stifled consumer financial position do not bode well for future prospects in the vehicle industry.
“We do not expect strong sales over the medium term, and this could be the new normal for a long time,” the firm concluded.