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Demand for new vehicles slumps for 3rd consecutive month

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.


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