Africa-Press – Namibia. AS the prices of new vehicles rise in the face of a weakening rand exchange rate, new vehicle sales dropped by 22,4% m/m in July 2022 to 677 units compared to 872 units sold in the prior month.
AS the prices of new vehicles rise in the face of a weakening rand exchange rate, new vehicle sales dropped by 22,4% m/m in July 2022 to 677 units compared to 872 units sold in the prior month.
This is according to data from the National Association of Automobile Manufacturers of South Africa (Naamsa).
On an annual basis, vehicle sales declined by 15,3% year-on-year in July 2022, dipping below its six-month moving average.
According to an analysis of the data by Simonis Storm, passenger and light commercial vehicles had the largest share of units sold in July 2022 with a 56,4% and 39,3% share of all units sold respectively.
“On a monthly basis, extra-heavy and heavy commercial vehicles recorded the largest declines in sales,” said Simonis.
During 2022, new vehicle sales were trending above 2021 levels until June 2022. July data point is the third monthly and annual decline in new vehicle sales, and it is the first time the number of units sold came in below levels seen in 2021.
European carmakers also registered the lowest number of new vehicles sold during June 2022 since 1996, according to data released by the European Automobile Manufacturers’ Association.
Vehicle sales decreased by 17% y/y in June 2022, with Volkswagen incurring the largest decline of 24% year-on-year. Manufacturers such as BMW AG, Volkswagen and Mercedes AG indicated in May 2022 that although semiconductor shortages eased, it would take time to increase production and supply global dealers with adequate stock.
Geopolitics could also be driving higher car prices, as certain brands relocate their value chains.
Simonis says following the outbreak of war in Ukraine, Renault sold its 68% stake in AvtoVaz, a state backed entity in Russia, and Jeep announced in July 2022 that it would close its plant in China, according to Bloomberg Intelligence.
“Indeed, a potential war between Taiwan and China could see global supplies of semiconductors tumble once more,” said Simonis.
Globally, car manufacturers are still facing high raw material and energy costs, which contribute to vehicle price increases. Car prices have also increased across the world, as carmakers focus their limited production on their most expensive and profitable models.
In addition, energy shortages and potential energy rationing in Germany are driving concerns of plant shutdowns, worsening stock shortages globally.
“The risk of seeing new vehicle prices continue to rise in Namibia is real, and will make it more expensive to purchase and operate new cars for Namibians.
“Coupled with the rise in interest rates, we expect demand for new vehicles to start showing signs of a retreat in the vehicle sales data coming out in coming months,” said Simonis.
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This is according to data from the National Association of Automobile Manufacturers of South Africa (Naamsa).
On an annual basis, vehicle sales declined by 15,3% year-on-year in July 2022, dipping below its six-month moving average.
According to an analysis of the data by Simonis Storm, passenger and light commercial vehicles had the largest share of units sold in July 2022 with a 56,4% and 39,3% share of all units sold respectively.
“On a monthly basis, extra-heavy and heavy commercial vehicles recorded the largest declines in sales,” said Simonis.
During 2022, new vehicle sales were trending above 2021 levels until June 2022. July data point is the third monthly and annual decline in new vehicle sales, and it is the first time the number of units sold came in below levels seen in 2021.
European carmakers also registered the lowest number of new vehicles sold during June 2022 since 1996, according to data released by the European Automobile Manufacturers’ Association.
Vehicle sales decreased by 17% y/y in June 2022, with Volkswagen incurring the largest decline of 24% year-on-year. Manufacturers such as BMW AG, Volkswagen and Mercedes AG indicated in May 2022 that although semiconductor shortages eased, it would take time to increase production and supply global dealers with adequate stock.
Geopolitics could also be driving higher car prices, as certain brands relocate their value chains.
Simonis says following the outbreak of war in Ukraine, Renault sold its 68% stake in AvtoVaz, a state backed entity in Russia, and Jeep announced in July 2022 that it would close its plant in China, according to Bloomberg Intelligence.
“Indeed, a potential war between Taiwan and China could see global supplies of semiconductors tumble once more,” said Simonis.
Globally, car manufacturers are still facing high raw material and energy costs, which contribute to vehicle price increases. Car prices have also increased across the world, as carmakers focus their limited production on their most expensive and profitable models.
In addition, energy shortages and potential energy rationing in Germany are driving concerns of plant shutdowns, worsening stock shortages globally.
“The risk of seeing new vehicle prices continue to rise in Namibia is real, and will make it more expensive to purchase and operate new cars for Namibians.
“Coupled with the rise in interest rates, we expect demand for new vehicles to start showing signs of a retreat in the vehicle sales data coming out in coming months,” said Simonis.
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