Local vehicle sales surge in January – SSS analysis
In a recent analysis report released by Simonis Storm Securities (SSS), the beginning of 2024 has marked a promising start for local vehicle sales, reaching the highest figures for January since 2016.
According to the report, a total of 1,369 units were sold, with 950 new vehicles sold in January alone, reflecting a notable 13.0% month-on-month increase from December 2023 and a substantial 17.7% year-on-year increase from January 2023.
The report suggests a positive outlook for vehicle sales in 2024, with expectations of further improvements based on the consistent upward trend observed.
Notably, rental agencies contributed to this surge, purchasing a total of 41 vehicles in January 2024, including popular models such as the Toyota Corolla Quest and VW Polo Vivo, indicating a positive trend for the tourism sector and a growing preference for self-driving among tourists.
Commercial vehicles emerged as the primary drivers of the annual increase in sales, comprising 50.5% of the total units sold. Within this category, light commercial vehicles, including the Toyota Hilux, dominated sales figures. Toyota emerged as the market leader in January 2024, capturing a substantial 46.8% market share, with the Toyota Hilux being a standout model.
However, passenger vehicle sales witnessed a slight decline of 0.8% year-on-year in January 2024, with a total of 470 units sold. Despite this, the overall trend remains positive, indicating a robust automotive market in Namibia.
In contrast, South Africa experienced a sluggish start in new vehicle sales in January 2024, with 41,636 units sold, marking a 3.8% year-on-year decrease. The National Association of Automobile Manufacturers of South Africa (NAAMSA) attributed this decline to significant economic challenges faced throughout 2023. Despite the downturn, the Toyota Hilux emerged as the top-selling vehicle in South Africa in January, followed by the VW Polo Vivo and Ford Ranger.
The contrasting trends between Namibia and South Africa highlight Namibia’s resilience and positive growth trajectory in the automotive sector, as outlined in the report by Simonis Storm Securities.
