According to the most recent budget from the Namibian Ministry of Finance for the fiscal year 2024/25, planned government expenditure on vehicle purchases has significantly risen to N$285.5 million.
For context, the total expenditure on vehicle purchases for operational and development purposes in the fiscal year 2022/23 was N$76.6 million, showing a modest increase from the allocation in the 2023/24 fiscal year.
“Of this amount, N$245.0 million (85.8%) is allocated for operational purposes, while the remaining N$40.5 million is designated for purchasing vehicles for development purposes. This increase in public spending is expected to contribute to the continuation of an upward trend in vehicle sales in 2024,” Simonis Storm said.
In February 2024, total new vehicle sales reached 1,102 units, nearly matching the sales figures from February 2023, which stood at 1,103 units.
This, according to Simonis Storm represents a slight contraction of 0.1% y/y but an increase of 16.0% m/m.
“Historically, February tends to witness higher sales volumes compared to other months, likely due to post-festive season recovery and tax-related purchases. Furthermore, in February 2024, rental agencies purchased 38 new vehicles, all of which were Toyota passenger vehicles. Interestingly, there was no recorded data regarding vehicles sold to the government, despite an increase in budget allocation,” said Simonis Storm.