19 April 2012

Namibia: Car Sales Increases

Windhoek — Namibian consumers went into a car buying frenzy during March with 1 349 new units sold last month.

Toyota and Volkswagen were the preferred brands of the month, with the two selling 52 percent of all passenger cars bought in March, according to the Namibia Vehicle Sales report from Simonis Storm Securities, a local brokerage and research firm.

The favourable sales represent a 7,1 percent increase over vehicles sold in February, and represent an annual increase of 13,5 percent.

"The monthly increase could have been expected given the seasonality of the figures, whereby March has historically been the best month for new vehicle sales," said analyst Rudolf Kuschke.

All vehicle categories performed well except for the buses, heavy commercial vehicles and extra heavy commercial vehicles. Passenger vehicles were the most bought cars with 630 cars sold.

This represents an increase of 12.1 percent over sales in February and represents an annual increase of 19.8 percent.

The strong upward trend surpassed the 4-month moving average for the third successive month.

The 4-month moving average increased to a new high of 528 units, compared to 448 units a year ago.

The 12-month cumulative number of new passenger vehicles sold increased to 5 624 units, 10.2 percent up year-on-year and 1.9 percent higher than last month.

Commercial vehicle sales only went up 3 percent higher than in February and 8.4 percent higher year-on-year.

The 12-month cumulative number of vehicles sold continued its strong upward trend, breaching the 13 000 units level for the first time.

However, there is a strong indication of commercial buying as well as government participation in the buying of commercial vehicles, because the commercial vehicles sold in the month represent 53 percent of all total new vehicles sold in March. "Government has also been quite active in the buying of vehicles of late," said Kuschke.

A total of 616 light commercial vehicles were sold, which was 4.6 percent higher year-on-year and above the 4-month average of 603 units.

In the medium commercial vehicle segment, 37 cars were sold, while 66 cars, buses, heavy and extra-heavy commercial vehicles were also purchased.

Kuschke said there were expectations that sales figures would "normalise in the next few months due to the seasonality factor, as well as supply issues mentioned by some dealers".

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