Vehicles Worth N$593 Million Sold in June

MONTHLY vehicle sales reached 1884 units in June, figures released yesterday by the National Association of Automobile Manufacturers of South Africa (NAAMSA) for new vehicle sold in Namibia showed.

“Figures for June indicate that monthly vehicle sales increased to 1884 units. The 14,1 % increase in sales month on month was a result of a sharp increase in light commercial vehicles. Annualised growth figures remain positive as well at 38,2%,” Simonis Storm Securities economist, Daniel Kavishe said.

Kavishe said growth in sales within the market remains positive. Annualised sales show that passenger and light commercial vehicles have grown by 32,9% and 40,8% respectively.

He said the interest rate hike in Namibia by 25 basis points in June will hopefully curb the fast rate of new vehicle purchases.

Kavishe said the argument has been that the lower interest rate was seemingly funding what Bank of Namibia considers to be unproductive entities and depleting the country’s foreign reserves at a fast pace.

Light commercial vehicles were the highest during the month under review recording 945 units sold. Passenger vehicle sales followed suit with sales recorded at 828 units. The main vehicle makes that outperformed were Toyota and Volkswagen which recorded sales of 643 and 286 units respectively.

The tourism season is in full swing with the amount of new purchases by rental companies having increased from 97 units in May to 183 units in June. “We however expect this number to decline in August and September,” said Kavishe said.

Vehicles sales during June month amounted to trade worth N$593 million. These numbers were mainly supported by sales of Toyota Hilux which amounted to more than N$120 million.

Passenger vehicle sales increased from 773 units in May to 828 in June. On a monthly basis, the sales increased by 7,1% and the year on year numbers show that sales increased by 31,9%.

Light commercial vehicle sales stood at 945 units in June, a month on month increase of 21,3% and a year on year increase of 40.9%. Medium commercial vehicles and heavy commercial vehicles had an annualized increase in sales of 56 % and 18,1%.

Source : The Namibian