The Namibian vehicle market experienced a rebound in new vehicle sales in November 2023, marking a significant turnaround after four consecutive months of decline.
According to the latest report from Cirrus Capital, sales surged by an impressive 12.1% year-on-year and 27.0% month-on-month, bringing the total number of units sold to 1,171.
“The significant increase in November’s vehicle sales marks a notable shift in the market dynamics, reflecting a renewed consumer confidence and an upturn in economic activities,” stated Cirrus.
The Toyota Hilux emerged as the frontrunner, constituting 22.1% of the total units sold, with 259 vehicles finding new owners. This dominance underscores Toyota’s stronghold on the Namibian automotive landscape.
The report further highlighted the performance disparity between passenger and commercial vehicles.
Passenger vehicles outpaced their commercial counterparts by 1.8% in month-on-month sales, yet commercial vehicles exhibited a superior year-on-year increase of 17.3%, compared to the 7.0% year-on-year growth in passenger vehicle sales.
YTD (year-to-date) figures reveal an overall uptrend in new vehicle sales, up by 19.7% to 11,934 units.
The report noted credit data, while delayed, continues showing that (debt-funded) vehicle purchases are by businesses and not individuals.
However, anecdotal evidence suggests an unexpected surge in cash purchases, not fully reflected in the data.
“Addressing the anomaly in government vehicle purchases, the report suggests a likely classification issue, with these acquisitions contributing to the overall stronger sales but not being accurately represented in the current data,” noted Cirrus.
Meanwhile, commercial vehicles experienced a notable resurgence, with a 17.3% year-on-year and a substantial 26.2% month-on-month increase, totalling 603 units.
The report highlighted the outstanding performance of Light Commercial Vehicles (LCVs), with a 21.3% year-on-year increase, attributed to the Toyota Hilux’s popularity.
“The Toyota Hilux’s remarkable sales figures indicate a clearing of the backlog in retail and business demand, positioning it as a frontrunner in the commercial vehicle segment,” said Cirrus.
However, not all commercial categories shared the same success, as Heavy Commercial Vehicles (HCVs) recorded a decline in both month-on-month and year-on-year sales, emphasising the diverse trends within the commercial vehicle market.
Passenger vehicle sales witnessed a substantial 27.9% month-on-month increase and a commendable 7.0% year-on-year growth.
YTD sales from January to November 2023 reached 5,835 units, reflecting a 15.1% year-on-year increase.
“Namibia’s summer, a traditional low season for rental purchases, saw only 12 Toyota Starlets rented in November. However, expectations are high for a pickup in rental purchases in Q2 ’24, anticipating the next high season,” said Cirrus.
The three most popular passenger vehicles contributing to this surge were the Toyota Corolla Cross, KIA Sonet, and Toyota Fortuner, collectively representing a quarter of all passenger vehicle sales.
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