Local vehicle sales in February rise to the highest level since March 2022
Local vehicle sales rose after a weak start to 2023, rising to the highest level since March 2022, as 1103 units were sold in February 2023 compared to 883 units sold in February 2022, according to an analysis report from investment research firm, Simonis Storm Securities (SSS).
On a monthly basis, units sold in February are 36.3% higher than sales in January 2023. Units sold in February 2023 exceed the 6-month moving average, which indicates that vehicle sales are recovering from the dip in sales observed at the end of 2022, SSS noted.
SSS said according to the most recent Namibian Budget for the fiscal year 2023/2024, the government’s expenditure on vehicle purchases is set to increase significantly.
“In 2022, the government spent N$55 million on vehicle purchases. However, for the upcoming fiscal year 2023/24, the government plans to spend N$210 million, representing a 282% increase in expenditure on vehicles,” SSS noted, adding that the large growth in spending is due to the low base effect.
“If materialized, increased public spending on vehicles may assist vehicle sales to persist on an upward trend throughout 2023. This will be in addition to high demand from the private sector for both passenger and light commercial vehicles,” the research firm noted.
Meanwhile, according to statistics in terms of brands, Toyota, Volkswagen, and Kia were the largest drivers of vehicle sales for February 2023.
Their sales represented 65% of total sales, with Toyota selling 509 units (↑ 50% m/m), Volkswagen selling 160 units (↑ 38% m/m) and Kia selling 53 units (↑ 13% m/m). Iveco had the highest monthly increase of 400%, but this only reflects 4 more vehicles sold in February than in January 2023
