Vehicle sales slow in August

The month of August witnessed a decline in the total number of vehicles sold, bringing to an end a three month period that witnessed considerable growth in the sales market for new vehicles.

August saw a 14.3% decline in the number of vehicles sold on a month-on-month (m/m) basis, IJG said in a vehicle sales report.

“995 new vehicles were sold in August, a decline of 14.3% (m/m) from the downward revised 1 161 units sold in July and an 8.2% year-on-year (y/y) decrease compared to the 1 084 vehicles sold in August last year,” IJG said.

According to IJG, year-to-date, 8 472 new vehicles have been sold, 168 less than the 8 640 sold during the same period in 2023. Of these, 3 778 were passenger vehicles, 4 184 were light commercial vehicles and 510 were medium- and heavy commercial vehicles.

Regarding passenger vehicle sales, 441 new passenger vehicles were sold, representing a 20.3% m/m decline from the revised July figure and an 11.1% drop compared to the same month last year.

“New commercial vehicle sales totalled 554 in August, a decline of 8.9% m/m and 5.8% y/y. Light commercial vehicle sales fell by 3.4% y/y, while medium commercial vehicle sales surged by 114.3% y/y and heavy commercial vehicle sales declined by 44.6% y/y,” IJG said.

Dominant

According to IJG, Toyota maintained its dominance in the new passenger vehicle sales segments, increasing its market share to 48.6% of sales year-to-date. “Volkswagen follows with 15.7% year-to-date, while Kia and Suzuki took up 9.5% and 6.3%, respectively,” IJG said.

“Toyota also continued to lead the light commercial vehicle segment, claiming 62.7% of the sales year-to-date, followed by Ford with 11.2% of the market share and Volkswagen with 5.1%. Hino retained the top spot in the medium commercial vehicle segment with 29.4% market share, and Scania continues to lead the heavy- and extra-heavy commercial segment with 28.3% of the sales year-to-date,” IJG added.

Looking ahead

The vehicle sales market is expected to face some pressure driven by weakened demand, IJG said.

“The Namibian vehicle sales market is facing ongoing declines, driven by weaker demand in both the passenger and commercial vehicle segments. While Toyota and Volkswagen maintain strong market shares, overall sales trends indicate a challenging environment,” IJG said.

The market for commercial vehicle sales is also facing some pressure, IJG said.

“Despite medium commercial vehicle sales showing occasional growth, the broader downward trend signals subdued consumer and business confidence. However, the twelve-month sales figure remains around 2018 levels, hinting at a potential positive long-term outlook.”