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Toyota continues to dominate new vehicle sales

Toyota continued to dominate the new passenger vehicle sales market in 2024, with a commanding 49% market share. Meanwhile, Volkswagen retained its position as the second-largest contributor, with a 15% share.

According to an analysis by IJG Securities, the total vehicle sales for December 2024 amounted to 1 100, showing a marginal 0.46% increase from the 1 093 units sold in November.

“The positive year-on-year change of 34.4% reflects a substantial increase in total vehicle sales from December 2023,” the analysts say.

The report says the 2024 total of 12 808 new vehicles sold includes 5 784 passenger vehicles, 6 242 light commercial vehicles, 237 medium commercial vehicles, and 545 heavy commercial vehicles.

In December, a total of 512 passenger vehicles were sold, representing a 25.8% year-on-year (y/y) increase.

“However, the month-on-month (m/m) change in passenger vehicles sold shows a 4.1% decline from the 534 units sold in November.

For 2024, passenger vehicles totalled 5 784 units, reflecting a 4.2% y/y decrease compared to the 6 040 units in the previous year,” the analysts say.

Toyota and Volkswagen prevail as the dominant leaders in the market, contributing an overall of 67.8% to new passenger vehicle sales in December.

During the month, 588 new commercial vehicles were sold, boasting a 42.7% y/y rise and a more modest m/m increase of 5.2%. The total number of new commercial vehicles sold slightly exceeds the current year’s monthly average of 585 units.

Light commercial vehicles dominated commercial vehicle sales in December, with 525 units sold, followed by heavy commercial vehicles, which recorded 43 sales, and medium commercial vehicles, with 20 units sold.

“During 2024, light commercial vehicle sales amounted to 6 242, reflecting a 9.1% y/y increase compared to the same period last year, while medium commercial vehicles reached 237, exceeding last year’s total of 233 units, the report says.

During the year, heavy commercial vehicle sales reached 545 units, reflecting a 2.3% increase compared to December of the previous year.

IJG notes that in 2024, Toyota maintained its dominance in light commercial vehicle sales, with a market share of 64%. Hino led the medium commercial vehicle segment, capturing 27% of the market, closely followed by Mercedes and Toyota, with shares of 24% and 22%, respectively.

In the heavy and extra-heavy commercial vehicle category, Scania accounted for 29% of total market sales, while Volvo Trucks secured 13%.

The analysts predict that the country’s vehicle sales are likely to show modest growth in 2025, supported by steady demand for commercial vehicles and continued interest in passenger cars, despite a 4.2% y/y decline in 2024.

The 75 basis points rate cut by the Bank of Namibia in 2024 may provide some support to affordability.

“Toyota and Volkswagen are likely to remain key players in the market, benefiting from their strong product offerings. Light commercial vehicles are expected to play a significant role in the market, supported by gradual business sector growth and ongoing infrastructure projects,” the analysts say.

– email: matthew@namibian.com.na

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