New car sales lowest since 2009
Business | 2019-10-18
by Lazarus Amukeshe
THE number of new vehicles sold this year continues dipping, hitting the lowest it has been for almost 10 years.
"A total of 806 new vehicles were sold in September, representing a 0,2% decrease from the 808 vehicles sold in August, while year-to-date, 7 841 vehicles have been sold of which 3 534 were passenger vehicles, 3 763 were light commercial vehicles, and 544 were medium and heavy commercial vehicles. This is the lowest year-to-date sales witnessed since 2009," reads an analysis by IJG Research Namibia.
The analysis follows the release of the recent new car sales figures by the National Association of Automobile Manufacturers of South Africa.
The Namibian has reported over the last few months that the number of new cars sold has been dipping in 2019, with some customers even opting to buy second-hand cars as the economic grip tightens.
"On a 12-month cumulative basis, new vehicle sales continued its downward trend. The number of 10 680 new vehicles were sold over the last 12 months, a 10,2% contraction from the previous 12 months," reads the IJG analysis.
According to IJG, Volkswagen leads the passenger vehicle sales segment with a 30,4% of the segment sales year-to-date, followed by Toyota at 29,7% of the market as at the end of September.
Kia, Mercedes, Hyundai and Ford each took around 5% of the market in passenger vehicles, leaving the remaining 19,4% of the market to other brands.
Although beaten in the passenger vehicles segment, Toyota had a stronger market share of 58,5% and remains the market leader in the light commercial vehicles.
Following is Nissan at 11,7% of the market, while Ford makes up third place with 9,3% of the year-to-date sales.
IJG said Hino leads the medium commercial vehicle segment with 37,2% of sales year-to-date, while Scania was number one in the heavy- and extra-heavy commercial vehicle segment with 34,8% of the market share year-to-date.
With the Namibian economy contracting by 2,6% in the second quarter, IJG said they expect demand to remain subdued due to low consumer and business confidence.
"The number of new vehicle sales recorded continues to decrease and any prospects of growth in the short-term remains dim," read the analysis.