In April 2024, light commercial vehicles (LCVs) dominated with 433 units sold, indicating robust business and trade activities while passenger vehicles follow closely with 411 units, a report released by Simonis Storm reveals.
In this same month, vehicle sales in Namibia fell to 899 units, down from 1,451 units in March and 1,004 units in April 2023, marking the lowest monthly sales recorded this year.
“This represents a negative growth rate of 38.0% m/m and 10.5% y/y. The decline in sales was primarily driven by commercial vehicles, contributing to the overall drop compared to the previous month,” the research firm said.
The sales of extra heavy commercial vehicles (XHVs) at 39 units, along with medium (MCVs) and heavy commercial vehicles (HCVs) at 10 and 4 units respectively, suggest ongoing investments in infrastructure and industrial sectors. Moreover, only two buses were sold during this period.
Out of the 899 vehicles sold in April 2024, dealerships acquired 887 units, while rental agencies purchased 12 units, which constituted only 1.3% of the total monthly sales. Additionally, all vehicles sold to rental agencies were Toyota passenger vehicles, with no sales recorded to government agencies.
“Analysis of vehicle sales by country of origin in April 2024 shows a strong preference for Japanese and German vehicles in Namibia. Japanese brands, led with 574 units sold, capturing 63.8% of the market share with Toyota being the most preferred brand. Germany follows with 114 vehicles sold, reflecting the admiration for German engineering and performance, with Volkswagen and Mercedes Benz being the leading brands. South Korea comes in third, with 55 vehicles sold (6.1%), indicating the appeal of their modern designs and advanced technology, primarily from Kia. American vehicles, with 53 units sold, also have a significant presence, largely driven by the popularity of Ford,” added Simonis Storm.
Both China and Sweden sold 33 vehicles each, showing that Chinese brands are making inroads with their competitive pricing and improving quality, while Swedish brands attract consumers with their safety features and innovative designs. France’s 13 vehicle sales suggest a smaller but stable market segment, whereas Indian vehicles, with 18 units sold, cater to budget-conscious buyers. English vehicles have a minimal presence, with only 6 units sold, indicating limited preference or availability in Namibia. No Italian vehicles were sold during this period.
Cross border trends
In April 2024, South Africa’s new vehicle sales presented a contrast to Namibia’s declining trend, showing a modest y/y increase of approximately 2%, with total sales reaching 38,172 units, up from 37,358 in April 2023. Despite a general downturn in the three-month moving average, this growth was driven by a 12% y/y surge in commercial vehicle sales, a full month without load shedding, and significant discounting by manufacturers and dealers.
Approximately 90% of sales originated from the dealer market, with 5% from the car rental industry and another 5% from government and corporate fleet purchases. New passenger vehicle sales increased by around 6% y/y, with the car rental industry contributing about 7% to total passenger sales and witnessing a 14% y/y increase. This suggests either an expansion in rental fleets or a shift towards subscription-based vehicle financing models. Brand performance varied, with increases seen in Suzuki (3% m/m), KIA (2% m/m), and Isuzu (2% m/m) in the passenger and light commercial sectors.
“Conversely, brands like Ford (decrease of 6% m/m), Toyota (decrease of 2% m/m), and Renault (decrease of 2% m/m) experienced declines. The commercial vehicle segment grew by 12% year-over-year, highlighted by increases in UD Trucks (4% m/m) and Volvo (3% m/m), while Toyota (decrease of 10% m/m) and IVECO (decrease of 3% m/m) saw declines.”