Executive summary
- The actual number of vehicles sold for October 2020 declined to 559 from 874 vehicles that were sold in September 2020. See figure 1.
- The largest decline in the number of vehicles sold for October 2020 was influenced by the low sales of Light commercial vehicles.
- Passenger vehicle sales recorded a consecutive growth for the months of September and October 2020.
- A total 8774 vehicles were sold between October 2019 and October 2020.
Analysis
- On an annual basis vehicle sale experienced a decline from (-18.86%) to (-20.47%), the decline was attributed by a lack of consumer confidence and declining disposal income to purchase new vehicles. See figure 2.
- April and May 2020 recorded the least number of vehicle sales as demand weakened considerably because of restrictions in movement induced by the Covid-19 pandemic.
- The number of light commercial vehicles recorded the biggest drop for October 2020, with 217 vehicles sold compared to 537 vehicles sold in September 2020, this was influenced by a lack of consumer demand.
- Passenger vehicle sales increased from 278 vehicles sold in September 2020 to 296 vehicles sold for October 2020, this was due to consumers regaining confidence.
Outlook
- The performance of vehicle sales sector for 2020, was impacted by the COVID-19 pandemic.
- Vehicle sales remains under pressure, despite the recently introduced repayment period for vehicle loans from 54 to for 72-months.
- We anticipate that vehicle sales which is a leading indicator for consumer behavior will show an upward trend for November and December as we are approaching the holiday season.
Figure 1: Monthly Vehicle Sales (October 2019 – October 2020), Namibia
Figure 2: Year on Year, Vehicle sales growth (October 2019-October 2020), Namibia
