CHAMWE KAIRA
Simonis Storm Securities believe that the 25 basis point repo rate cut by the Bank of Namibia is unlikely to significantly impact vehicle sales in the short term, given that current sales figures have already exceeded pre-pandemic levels, reflecting a resilient market recovery.
The firm noted that the second-hand vehicle market has gained considerable traction, becoming an attractive option for buyers amid economic prudence.
This trend suggests a shift in consumer preferences towards more cost-effective alternatives, especially in an environment where luxury vehicle purchases remain restricted.
Simonis noted the deceleration in motor vehicle price inflation suggests some relief in this segment, even as other transportation costs continue to exert upward pressure on overall inflation rates in the country.
In July, 671 new Toyota vehicles were sold, accounting for over 50% of total new vehicle sales. Of these, 365 were light commercial vehicles, 305 were passenger vehicles, and one was a medium commercial vehicle.
Regarding the popularity of Toyota models, the Toyota Hilux leads by a significant margin, with 323 units sold, making it the top choice among buyers. The Toyota Fortuner follows with 102 units, showcasing its strong appeal as a reliable SUV. The Toyota Corolla Cross and Toyota Starlet also performed well, with 57 and 56 units sold, respectively, indicating substantial interest in both the crossover and compact hatchback segments.
Other models, such as the Toyota Corolla Quest, Land Cruiser PU, and Urban Cruiser, occupy the midrange in terms of popularity. In contrast, models like the Toyota Starlet Cross, RAV4, and Rumion are less popular, with fewer units sold compared to other models.
New vehicle sales by rental agencies saw a substantial increase in July, rising to 141 units from 54 units in the previous month. However, this marks a decrease compared to the 159 units sold in July 2023. Among the vehicles purchased, 59 were light commercial vehicles, specifically Toyota Hilux models, while the remaining 82 were passenger vehicles, including 75 Toyota models and 7 VW Polo Vivos.
New vehicle sales began the second half of 2024 on a strong note, with July, seeing an increase primarily driven by the demand for passenger vehicles, particularly Toyota models. A total of 1,172 new vehicles were sold in July, marking an 18 % month on month increase. Despite this, sales were slightly lower compared to the same period last year.
Commercial vehicles once again dominated the market with 608 units sold, making up 51,9% of total sales, although this was a decrease from the previous month. Conversely, passenger vehicles saw an uptick, with 564 units sold, accounting for 48,1% of total sales, an increase compared to June.
In the Light Commercial Vehicles (LCV) category, sales surged from 510 units in June to 549 units in July. The Medium Commercial Vehicles (MCV) category also saw a slight increase, with sales rising from 21 units to 22 units during the same period.
Sales of Heavy Commercial Vehicles (HCV) declined from 15 units in June to nine units in July. Extra Heavy Vehicles category also experienced a decline, with sales falling from 45 units in June to 25 units in July. The Bus category also saw a decrease, with sales dropping from six units in June to three units in July.
