New Car Sales Slowdown in May

NEW car sales slowed down in May to reach 1 603. This constitutes the lowest new vehicle sales figure since January 2014.

“Sales fell 3,3% year on year after growing by 4,4% year-on-year in April. On a month-on-month basis sales of new vehicles fell by 8% although year to date sales set a record high with 9 148 new vehicles sold during the first five months of 2015,” IJG Securities said. Sales of passenger vehicles decreased by 15,4% month- on month during May after sliding 4,4% month -on month- in April.

So far this year, 4 080 new passenger vehicles have been sold eclipsing last year’s figure of 3 913.

Toyota and Volkswagen made up the bulk of new passenger vehicle sales, contributing 61% to the total, down from 70% in April. The roles have reversed however with Volkswagen outselling Toyota for the first time since June last year.

Total new commercial vehicle sales dropped a further 0,6% month-on-month in May after falling 29,7% in April.

“Recent relative weakness in new vehicle sales can largely be attributed to the high base set during the first three months of 2015. A g consumer base supported by expansionary fiscal policy and real wage growth should see the growth trend continue, although at a slower pace due to an elevated base,” the firm said.

Source : The Namibian