Namibia June vehicle sales on third-month high - CNBC Africa

Namibia June vehicle sales on third-month high

Southern Africa

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“We’ve started off this year on a slower note, with vehicle sales in a number of ways less than what we’ve seen last year. We saw the 1.2 per cent increase this month and it’s a combination of strong commercial vehicle sales being offset by slower passenger vehicle sales,” IJG Securities head of research Romé Mostert told CNBC Africa on Thursday.

The monthly increase was made up of a 6.8 increase in commercial vehicle sales, which was partially offset by a 9 per cent contraction in passenger vehicle sales.

June has been the third-highest month in terms of vehicle sales in IJG Securities’ 17-year history of collecting vehicle sales data.

The in passenger vehicle sales is attributed to consumers waiting for better deals to come up before making purchases.

Namibia’s government will also influence vehicle sales in future through their own purchases, as number of local car dealerships already has government tenders from government. It is anticipated that government sales in a particular brand to be approximately 1,200 vehicles over the next three months.

“The strong growth driven by direct government consumption will be offset by limited supply or maybe supply constraints. Secondly, I think you would see the tax breaks that were introduced last month that will lead over indirectly through your personal consumption and the private sector coming through there to buy vehicles,” added Mostert.

The purchase of heavy commercial vehicles was up 4.5 per cent in May, down 11.1 per cent in June and medium-commercial vehicle purchases were down 18 per cent.