WINDHOEK, Jan. 20 — A total of 10,923 vehicle units were sold in Namibia last year, 15.9 percent higher than the 9,427 units sold in 2021, exceeding the 10,415 units sold in 2019, according to an analysis from an investment research firm, Simonis Storm Securities (SSS) on Friday.
According to SSS, the annual sales were split 51 percent for passenger vehicles and 49 percent for commercial vehicles.
“This was despite Namibia being in an interest rate hiking cycle and high commodity prices and shipping costs, together with a weak Rand exchange rate, leading to an average of 5 percent increase in vehicle prices across different brands during 2022,” the research firm noted.
According to SSS, the improvement in vehicle sales correlates with positive growth rates recorded in the wholesale and retail sector throughout 2022, expanding by 0.8 percent year-on-year (y/y), 0.6 percent y/y, and 10.2 percent y/y in the first, second and third quarter of 2022 respectively.
“Consumption spending has been somewhat resilient last year, despite inflationary pressures and rising interest rates when comparing vehicle sales in 2022 to 2021. An improvement in vehicle sales also came about despite local dealerships battling with supply chain issues which have led to major backlogs in customer orders,” SSS added.
SSS expects vehicle sales to remain on an upward trend in 2023, with the expectation that the supply of new vehicles from overseas factories should improve from mid-2023 onwards, together with continued momentum in spending from last year.
Commercial vehicles, in particular, could see improved sales figures owing to favourable mining and transport sector growth forecasts for 2023, as well as the construction of green hydrogen projects at the coast, the research firm said. (Xinhua)
Namibia vehicle sales increase in 2022 despite inflationary pressure, interest rate hikes
