New vehicle sales remain sluggish
New vehicle sales remain sluggish

New vehicle sales remain sluggish

Phillepus Uusiku
PHILLEPUS UUSIKU

A total of 705 new vehicles were sold in January, which is 29 fewer than were sold in December, but represents a 1.7% year-on-year increase from the 693 new vehicles sold in January 2021.

On a twelve-month cumulative basis, a total of 9 440 new vehicles were sold up to the end of January 2022, representing an increase of 23.7% from the 7 633 new vehicles sold over the same 12-month period a year ago. 2022 is thus off a somewhat better start than January 2021, however, new vehicle sales remain sluggish, according to IJG Securities.

404 New passenger vehicles were sold during January, an increase of 11.6% m/m from the 362 sold in December, and 14.1% higher year-on-year from the 354 new passenger vehicles sold in January 2021. On a rolling 12-month basis, new passenger vehicle sales rose 38.6% year-on-year at the end of January, although the figure is from a very low base. 12-month cumulative passenger vehicle sales were down 53.9% from the peak in April 2015, IJG pointed out.

Commercial vehicle sales declined to 301 units in January, representing a contraction of 19.1% month-on-month and 11.2% year-on-year. During the month 266 light commercial vehicles, 5 medium commercial vehicles, and 30 heavy commercial vehicles were sold. On a year-on-year basis, light commercial sales fell by 11.6% year-on-year, medium commercial vehicles contracted by 44.4% year-on-year, and heavy and extra heavy vehicle sales grew by 3.4% year-on-year, IJG added.

Shortage

Also commenting on the data, Simonis Storm notes that global chip shortage is now expected to persist much longer than mid-2022, with some analysts expecting shortages to mitigate by end of 2023.

To provide some perspective, at the end of January 2022, the Joe Biden administration indicated that about 140 American auto manufacturers have less than five days’ worth of semiconductor chips in stock, compared to 40 days in 2019.

Car manufacturing will continue to be under pressure in 2022, with Ford already cutting production targets for the new year and missing Wall Street earnings expectations, Simonis Storm added.

This means that vehicle imports into Namibia and stock delivery to local vehicles will continue to be constrained and keeping a limit on vehicle sales growth. The local market can still be characterised by demand exceeding supply, indicating that vehicle sales would be higher in the absence of global vehicle manufacturing limitations, Simonis Storm pointed [email protected]

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