Toyota maintained its dominant position in the Namibian vehicle market during the month of October, with 619 new vehicles sold. This accounted for over 54% of total vehicle sales and included 361 light commercial vehicles, 256 passenger vehicles, and two medium commercial vehicles.
According to Simonis Storm, the Toyota Hilux emerged as the clear market leader, with 325 units sold, reinforcing its appeal as the preferred choice among buyers.
“Ford ranked second in market share, driven primarily by the strong performance of the Ranger. Volkswagen (VW) secured the third position, contributing 90 units to total sales. Other key contributors included Kia and Isuzu, each selling 50 units, and Suzuki with 43 units, underscoring their consistent presence in the market,” Simonis Storm said.
October 2024 demonstrated an impressive upturn in total new vehicle sales, reaching 1,145 units. This represents a 24.6% y/y increase from 919 units in October 2023 and a notable 15.9%m/m rise from September 2024. Historically, October vehicle sales have typically fallen below the1,000-unit threshold; however, this year’s out performance is primarily attributable to pre-year-end tax-related purchases. This surge suggests heightened activity among both businesses and individuals seeking to optimize tax benefits before fiscal year closure.
Commercial vehicle sales remained the primary driver of the market, accounting for 55% of total vehicle sales, with 631 units sold during the month. Year-to-date (YTD) commercial vehicle sales stood at 5,876 units, marking a 7.1% increase compared to 5,487 units recorded in the corresponding period of 2023. Light commercial vehicles dominated the segment, with 568 units sold, contributing 49.6% to total vehicle sales. The strong demand for commercial vehicles underscores their pivotal role in supporting logistics, construction, and trade, reflecting broader economic resilience in the sectors.
Passenger vehicle sales accounted for 45% of total vehicle sales, with 514 units sold in October 2024. These marks are bound after two months of sequential declines. Nonetheless, YTD passenger vehicle sales remain subdued at 4,783 units, down 9.3% from 5,272 units in 2023. The recent uptick may be linked to improved household liquidity stemming from enhanced credit access, tax refunds, and the lingering effects of tax relief measures. The contrasting trends between the commercial and passenger vehicle segments high light varying economic pressures and priorities among consumers and businesses.
The Namibian vehicle industry is poised for significant transformation, driven by sustainability initiatives and anticipated market diversification from key players like Toyota and Kia Motors.
“Toyota is actively aligning its operations with global carbon neutrality goals, evidenced by its exploration of equity investment in Namibia’s green iron production through HyIron. This partnership aims to secure sustainable materials for Toyota’s green steel initiatives, a cornerstone of its strategy to reduce Scope 3 emissions and achieve carbon neutrality between 2030 and 2040. The Oshivela Green Iron Production Plant, leveraging renewable energy, is set to produce five tonnes of green iron per hour, with an ambitious target of scaling production to 200,000 tonnes annually by 2026.
“These efforts not only enhance Toyota’s sustainability credentials but also position the brand to influence Namibia’s automotive landscape through the potential introduction of eco-friendly bakkies, including hybrid and electric models. Kia Motors has made a strategic entry into the competitive bakkie segment with the unveiling of the Tasman. This model combines utility and lifestyle appeal with a bold design, practical features, and a variety of configurations, including 4×2 and 4×4 options. Offering a towing capacity of 3,500 kg and a choice between 2.5L petrol and 2.2L diesel engines, the Tasman targets diverse consumer segments. Scheduled to launch in South Africa by late 2025, this development is expected to intensify competition, challenging the dominance of established players like Toyota and Ford,” Simonis Storm said.
Simonis Storm also notes that these developments carry profound implications for the Namibian vehicle market. Increased competition from Kia’s Tasman is likely to spur innovation among established players, potentially driving down prices and expanding options for consumers. Toyota’s investment in green steel production reflects a broader shift towards sustainability, which could accelerate the adoption of hybrid and electric vehicles in Namibia as global trends influence local preferences.
“Furthermore, partnerships like Toyota’s green iron initiative present significant economic opportunities. By fostering local supply chain development and job creation, these collaborations may help reduce vehicle costs in the long term, while also bolstering Namibia’s positioning as a regional hub for sustainable industrial production. The interplay of sustainability, competition, and economic growth marks a transformative period for Namibia’s automotive sector. As global trends in decarbonization and innovation converge with local market dynamics, the sector is well-positioned for a new phase of growth and diversification.”