Africa-Press – Namibia. THE year 2022 is off to a good start as new vehicle sales trend above sales levels observed over the last three years.
According to analysts Simonis Storm Securities, the latest data shows new vehicle sales of 905 in April 2022, compared to 1 054 in the prior month, registering a drop of 14,1% m/m, and 755 units sold in April 2021 (up 19,9% y/y).
“Monthly new vehicle sales average 888 year to date, which is above the average of 706 in the last two years, and moving closer to the long run average of 1 219,” said Simonis.
Passenger and light commercial vehicles continue to dominate new vehicle sales, accounting for 51,5% and 43,3% of total sales, respectively in April 2022, added the Simonis analysis.
On an annual basis, passenger vehicle sales increased by 30,2% y/y, light commercial vehicles went up 21,7% y/y, medium commercial vehicle sales dropped 15,0% y/y, while heavy commercial vehicle sales rose 12,5% y/y, and extra-heavy commercial vehicle sales dropped 56,5% y/y in April 2022.
During April 2022, Toyota dominated the market in terms of new vehicle sales with 41,5% market share, Volkswagen (13,5%), both Ford and Kia (6%) and both Suzuki and Nissan (5,9%).
“These six brands accounted for 78,8% of total vehicle sales during April 2022. In last month’s report, we highlighted that certain dealerships had on average 3% price increases on new vehicles during the first quarter of 2022.
“According to inflation data from the Namibia Statistics Agency, we see a slight uptick in the motor car category. In special cases, second hand vehicle prices have surpassed prices of new vehicles due to shortages in supply,” said Simonis.
“We anticipate new vehicle sales to continue trending upwards as local demand remains resilient, despite Namibia being in an interest rate hiking cycle. Vehicle sales will also likely be supported by rental companies restocking their fleet levels in anticipation of rising tourist bookings and arrivals,” added the analysts.
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