Demand for new vehicles slumps for 3rd consecutive month
Local demand for new vehicles has decreased for the 3rd consecutive month, down by 3.7% month/month in September 2023, compared to -13.2% m/m in August 2023, according to an analysis from investment research firm, Simonis Storm Securities.
According to the firm, 1,054 vehicles were sold in September, below the 6-month moving average. Vehicle sales have increased by 3.5% y/y in September 2023.
“Engagements with various stakeholders have revealed that new vehicle acquisitions accounted for 75% of the total sales in September, mirroring the statistics of the preceding month,” the firm noted, adding that there is a noticeable decline in the proportion of vehicles being purchased on credit, with credit sales representing 36% of sales, while cash transactions accounted for 64%.
According to SSS, many local dealers are proactively offering extended payment holidays to entice potential buyers.
“Additionally, the heightened demand for vehicles among businesses suggests a positive sentiment in the local market, indicating a propensity for business expansion,” they said.
Toyota remains the driver of the market, contributing 45% of total sales, followed by Volkswagen (12%), Kia (8%), Ford (7%) and Nissan (4%).
According to market participants, customers in Namibia are highly demanding the new Ranger Raptor Ford as 1,009 customers in Windhoek are on the waiting list.
