Commercial vehicles lead sales surge in February

New vehicle sales in Namibia reached 1 102 units in February, according to a report by Simonis Storm Securities.
This figure is nearly identical to February 2023’s sales (1 103) and represents a slight decrease of 0,1% year on year.

According to the report, this is a positive increase of 16%, compared to January this year.

“The most interesting takeaway is the significant growth in commercial vehicle sales,” the report states.

Commercial vehicles accounted for 57,6% of total sales, with light commercial vehicles leading the pack at 572 units sold.

“This is the highest number recorded since June 2023,” the report states.

“The increase in heavy and extra heavy commercial vehicle sales to 15 and 33 units, respectively, is also a positive indicator.

This suggests potential growth in industrial and economic activity, particularly in manufacturing, construction, and trade,” Simonis says.

Passenger vehicle sales, on the other hand, showed a slight decrease of 16% year on year, with 467 units sold.

However, this represents a stable performance, compared to January 2024.

“It’s important to note that February typically sees higher sales volumes than other months.

This could be due to post-festive season recovery and tax-related purchases,” the analysts say.

The report highlights an interesting trend regarding government vehicle purchases.

Despite an increase in the budget allocated for this purpose, no government purchases were recorded in February.

“The Namibian Ministry of Finance and Public Enterprises allocated N$285,5 million for vehicle purchases in the 2024/25 fiscal year – a significant increase from previous years.

“We expect this increase in public spending to contribute to a continuation of the upward trend in vehicle sales throughout 2024.”

The transport category, which accounts for 14,3% of the consumer basket, saw an inflation rate of 6,5% in February 2024.

This increase is primarily attributed to the rise in vehicle prices, particularly for passenger vehicles.

According to the report, the automotive sector in South Africa faced a continued decline in February, marking the seventh consecutive month of downturn.

Only 44 749 new cars were sold.