The current interest rate environment is unsure with South Africa teetering on the edge of a local currency credit ratings downgrade which, should it take place, will see rapid currency depreciation, IJG Research Namibia said.
This, IJG Research said, will likely be followed by interest rate hikes which, along with higher prices for vehicles, will put further pressure on consumers.
"However, should positive political outcomes be seen in South Africa, there is scope for currency appreciation and further monetary easing, bringing relief to Namibian consumers too, and kick-starting the economy," the firm stated.
Meanwhile, 1,163 new vehicles were sold in September, an increase of 6.3% month on month but down 3.6% year on year. Year-to-date 10,435 new vehicles have been sold, a 19.7% on last year.
IJG Research further stated that cumulative vehicle sales continue to contract on a rolling 12-month basis, and year-to-date vehicle sales figures are currently below 2012 levels
"This is a reflection of depressed business and consumer confidence, as well as slowed government spending on new vehicles," the firm added.
Toyota continues to lead the market for new vehicle sales with 35% of the passenger vehicle market and 47.9% of the light commercial market this year. Furthermore, a total of 720 new commercial vehicles were sold in September and 6,014 have been sold year-to-danewste. While light commercial vehicle sales are down 35.5% from their peak, slightly less than the 40.8% that passenger vehicle sales are down.