Namibians buy 966 cars in May

Namibians bought 966 cars in May, an increase from the 899 bought in April.

According to a report by Simonis and Storms Securities the majority of the vehicles purchased were commercial.

“In May 2024, vehicle sales in Namibia reached 966 units, marking a 7,5% m/m increase from the 899 units sold in April 2024,” says the report.

By the end of April 2024, corporate instalment and leasing credit uptake has averaged 24,5% year-to-date, while household instalment and leasing credit uptake has averaged 6,1% year-to-date.

This means that by April, businesses were borrowing more, for things like equipment or upgrades, than they did last year.

On the other hand, people are not borrowing as much extra money for things like furniture or cars.

Their borrowing score only went up to 6,1%.

The affordability of vehicles is a growing concern in the northern regions, with vehicle inflation in that region trending well above vehicle inflation in the rest of the country.

Out of the 966 vehicles sold, dealerships accounted for 921 units, while rental agencies acquired 45 units.

According to the report, there are no records of vehicle sales to the government.

Passenger and light commercial vehicles remain the most significant categories, with 460 and 442 units sold, respectively.

Sales of passenger vehicles declined by 8,9% y/y compared to the same period last year.

This indicates a slight decrease in consumer demand for these vehicles.

However, sales of light commercial vehicles increased by 8,1% y/y.

According to the report, medium commercial vehicles experienced a decline of 31,8% y/y, with only 15 units sold in May 2024, compared to 22 units in May 2023.

In contrast, heavy commercial vehicles saw a growth of 185,7% y/y, selling 20 units in May 2024, compared to 7 in the previous year and 4 units sold last month.

“This increase suggests an uptick in industrial or infrastructure-related activities requiring heavier vehicles,” reads the report.

Extra heavy vehicles experienced a decline of 33,3% y/y and only three buses were sold in May 2024.

Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!

Latest News