Vehicle Sales Drop in December

THE number of new cars sold in December dropped slightly to 1 831 compared to November figures.

IJG Securities said in a report that December is usually a slower month but added that there was an increase of 53,9% on a year to year basis.

Monthly sales figures show record sales were seen in 2014. Total sales for the year stand just shy of 22 000 vehicles, up 36,2% on the 16 113 vehicles sold the previous year, the report said.

During 2014, 9 629 passenger vehicles drove out of the show room, with the sales 25,7% higher than 2013, highlighting the improving state of the consumer.

Commercial vehicle sales also increased significantly, with g sales from the light, medium and heavy commercial categories. Commercial vehicles sold totaled 12 323, up 45,8% on last year’s figure.

Toyota and Volkswagen dominated the passenger market, selling the most vehicles in 2014, with the two brands claiming 30,6% and 22,4% of sales respectively. Toyota was also the market leader in light commercial vehicles, having the lion’s share of sales at 47,7% of the market, followed by Nissan at 14,5% and Ford in third place with 9,9%.

“The g increase in vehicle sales is attributed to a number of factors, namely the on-going expansive fiscal and monetary positions of the Ministry of Finance and Bank of Namibia, as well as purchase of vehicles by government. The Ministry of Finance has allocated N$984 million to vehicle purchases in the 201415 National Budget, a N$517 million (111%) increase on the vehicle expenditure budget of the 201314 financial year,” IJG said.

The report said the g growth trend is expected to continue. However, sales may slowdown as monetary policy tightening is likely to continue, it said.

“Nevertheless, government tenders yet to be delivered will maintain the momentum of vehicle sales through 2015,” the report said.

Source : The Namibian