Report by: Monika Kristof
Executive summary
- The number of vehicles sold in November 2020 increased to 698 from 559 vehicles that were sold in October 2020. See figure 1.
- Black Friday specials and the recent introduction of 72-month vehicle loans repayment period could likely have been the cause for the month-on-month boost in the number of vehicles sold in November 2020.
- The Increase in the number of vehicles sold for November was mainly influenced by high sales recorded for Passenger vehicles and Light commercial vehicles.
- Passenger vehicle sales recorded a consecutive growth for the past four months.
- The number of Medium and Heavy commercial vehicles sold recorded a decline in sales between October 2020 and November 2020.
Analysis
- On an annual basis vehicle sales experienced growth from (-20.47%) to (-18.80), This was influenced by a high demand for vehicles which is driven by consumer confidence and an increase in income. See figure 2.
- The number of Passenger vehicles sold increased from 296 vehicles sold in October 2020 to 339 vehicles sold in November 2020.
- Light commercial vehicle sales increased from 217 recorded for October 2020 to 321 vehicles sold in November 2020.
- The number of heavy commercial vehicle sales declined from 7 vehicles sold in October 2020 to 3 vehicles sold in November 2020.
- The number of medium commercial vehicle sales declined from 17 vehicles sold in October 2020 to 9 vehicles sold in November 2020.The decline is influenced by lack of consumer confidence which decreases the demand for vehicles.
Outlook
- As the year 2020 is coming to an end in a few weeks time, auto manufacturers and dealerships are pushing hard to meet 2020 sales targets. This combined with appealing holiday promotions and the need to make up for slow sales due to the COVID-19 pandemic.
- We anticipate that vehicle sales which is a leading indicator for consumer behavior will show an upward trend for the month of December 2020.
Figure 1: Monthly Vehicle Sales (November 2019–November 2020), Namibia
Figure 2: Year on Year, Vehicle sales growth (November 2019-November 2020), Namibia
