Chinese and Indian car models increased their market share with 533 and 236 units respectively sold in 2023, as Namibians become increasingly price sensitive, according to latest figures.
The data shows that on average, a total of 44 Chinese model cars were sold per month in 2023, a significant increase from the 39 average per month recorded in 2022.
The statistics from Simonis Storm show that an average of 20 Indian models were sold per month in 2023.
Leading the pack in Chinese car models is Haval with 267 units sold and for Indian models, a total of 190 Mahindra models were sold last year.
According to Research Assistant at Simonis Storm, Halleluya Ndimulunde, the prevalence of Asian cars in Namibia can be attributed to the affordability factor associated with vehicles from Asian countries.
Traditionally, Asian nations have been adept at producing cost-effective automobiles, making them an attractive option for price-conscious consumers in Namibia.
“Additionally, the fact that there are a significant number of vehicles from China and India suggests that Namibia is also a price-sensitive market,” she said.
Also, strong trade ties between Namibia and certain Asian nations might facilitate the import of vehicles, contributing to the rise in registrations she said
Ndimulunde further explained that Japanese cars still dominated the Namibian roads with an impressive 7,722 vehicles sold.
This figure is more than three times the number of vehicles from any other country, reaffirming Japan’s stronghold on the Namibian market.
Germany secured the second position with 1,892 vehicles, followed by South Korea with 1,079, and the United States with 842 vehicles.
The substantial number of Japanese and German vehicles sold suggests a local appetite for high-quality, precision-engineered automobiles.
On the other hand, the significant presence of Chinese and Indian vehicles implies that Namibia is a market where price sensitivity plays a pivotal role.
The collective market share of vehicles from Asian nations outweighs those from Europe and North America. This underscores the formidable influence of Japanese, Chinese, and Indian car makers on Namibian drivers.
“It is clear that Japan is the dominant player in this market, and that Asian countries as a whole account for the majority of vehicles sold by country of origin. The data also suggests that the Namibian economy is both quality-conscious and price-sensitive,” she said.
Meanwhile, research analyst at IJG Securities Angelique Bock says that Toyota has asserted its dominance in the market share for the current year with 2,659 units sold in 2023. It is expected that they will continue to do so if they lower their prices to accommodate consumers.
“However, the question remains whether consumers will demand these vehicles because of higher financial pressures due to the high interest rates, increasing their loan payments and high cost of living,” she said.
Namibia’s vehicle sales increased by 17% in 2023 to 12,775 units compared to 10,919 units sold in 2022, according to the latest data. This marks the highest total of new vehicles sold in the country since 2017.
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