June's vehicle sales recover from May
Uncertain economic conditions and disheartened confidence will keep vehicle sales depressed.
Phillepus Uusiku
Namibia's new vehicle sales registered a monthly increase of 62.8% with 767 new vehicles sold in June compared to 471 units sold in the prior month.
On an annual basis, vehicle sales contracted at a slower pace of 21.5% in June 2020, compared to 55.4% recorded in May 2019, according to Simonis Storm's (SS) new vehicle sales report.
“We view this as pent up demand and a possible return to pre-Covid levels. We do not foresee any significant increase in new vehicle sales for the rest of the year from the pre-Covid levels,” SS says.
SS further pointed out that a reduced appetite for borrowings, business closures, loss of income and reduced spending power, uncertain economic conditions and disheartened consumer, business and investor confidence will keep vehicle sales depressed.
Under pressure
Also commenting on the new vehicle sales figures, IJG Securities pointed out that June saw the number of new vehicles sales increasing quite substantially on a monthly basis.
However, this increase is from a relatively low base as vehicle sales are merely recovering after very low activity during lockdown. In the first half of this year, new vehicle sales are down 33.9% year-on-year compared to the same period in 2019.
“We expect new vehicle sales to remain under pressure and do not foresee any substantial increases in the number sold for at least the rest of the year, as economic conditions are expected to remain weak,” IJG added.
The bulk - 69.9% - of the total new vehicle sales were recorded by the four main makes, namely Toyota, Volkswagen, Ford and Isuzu, that registered 39.2%, 16.8%, 7.3% and 6.5% respectively.
Most of the Toyota units sold was light commercial vehicles and the remainder passenger vehicles, registering 202 and 99 units respectively.
Volkswagen sold mainly passenger vehicles recording 109 out of 129 units, while Ford and Isuzu primarily sold light commercial vehicles. Ford sold 47 out of 56 units and Isuzu 47 out of 50 units.
Categories
In the different vehicle categories, light commercial vehicles and passenger vehicles contributed collectively 95.3% to total vehicle sales in June, slightly lower than what was posted in May of 95.7%.
Busses recorded the highest monthly increase of 200%, with 3 units sold, 2 units from Mercedes and 1 from Scania. Heavy commercial vehicles recorded a monthly increase of 150% with 10 units sold, 4 from Hino, 3 units each from Fuso and Faw, respectively, SS says.
The number of units sold collectively in heavy commercial vehicles, medium commercial vehicles and extra heavy commercial vehicles increased from 19 units in May 2020, to 33 units in June 2020.
However, on an annual basis, extra heavy commercial vehicles dropped by 73.2%, medium commercial vehicles by 61.3%, while heavy commercial vehicle sales increased by 42.9%. This growth was not enough to offset the annual decline for the three categories collectively, SS added.
Namibia's new vehicle sales registered a monthly increase of 62.8% with 767 new vehicles sold in June compared to 471 units sold in the prior month.
On an annual basis, vehicle sales contracted at a slower pace of 21.5% in June 2020, compared to 55.4% recorded in May 2019, according to Simonis Storm's (SS) new vehicle sales report.
“We view this as pent up demand and a possible return to pre-Covid levels. We do not foresee any significant increase in new vehicle sales for the rest of the year from the pre-Covid levels,” SS says.
SS further pointed out that a reduced appetite for borrowings, business closures, loss of income and reduced spending power, uncertain economic conditions and disheartened consumer, business and investor confidence will keep vehicle sales depressed.
Under pressure
Also commenting on the new vehicle sales figures, IJG Securities pointed out that June saw the number of new vehicles sales increasing quite substantially on a monthly basis.
However, this increase is from a relatively low base as vehicle sales are merely recovering after very low activity during lockdown. In the first half of this year, new vehicle sales are down 33.9% year-on-year compared to the same period in 2019.
“We expect new vehicle sales to remain under pressure and do not foresee any substantial increases in the number sold for at least the rest of the year, as economic conditions are expected to remain weak,” IJG added.
The bulk - 69.9% - of the total new vehicle sales were recorded by the four main makes, namely Toyota, Volkswagen, Ford and Isuzu, that registered 39.2%, 16.8%, 7.3% and 6.5% respectively.
Most of the Toyota units sold was light commercial vehicles and the remainder passenger vehicles, registering 202 and 99 units respectively.
Volkswagen sold mainly passenger vehicles recording 109 out of 129 units, while Ford and Isuzu primarily sold light commercial vehicles. Ford sold 47 out of 56 units and Isuzu 47 out of 50 units.
Categories
In the different vehicle categories, light commercial vehicles and passenger vehicles contributed collectively 95.3% to total vehicle sales in June, slightly lower than what was posted in May of 95.7%.
Busses recorded the highest monthly increase of 200%, with 3 units sold, 2 units from Mercedes and 1 from Scania. Heavy commercial vehicles recorded a monthly increase of 150% with 10 units sold, 4 from Hino, 3 units each from Fuso and Faw, respectively, SS says.
The number of units sold collectively in heavy commercial vehicles, medium commercial vehicles and extra heavy commercial vehicles increased from 19 units in May 2020, to 33 units in June 2020.
However, on an annual basis, extra heavy commercial vehicles dropped by 73.2%, medium commercial vehicles by 61.3%, while heavy commercial vehicle sales increased by 42.9%. This growth was not enough to offset the annual decline for the three categories collectively, SS added.
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