By: Staff Writer
NAMIBIA experienced a third consecutive month of reduced demand for new vehicles, with 1,054 vehicles sold in September.
The sales figures demonstrated a 3.7% month-on-month (m/m) decrease in September 2023, compared to the 13.2% m/m decrease in August 2023.
Although there was a 3.5% year-on-year (y/y) increase in vehicle sales in September, the numbers fell below the six-month moving average.
Simonis Storm Securities (SSS) attributed the decline in vehicle sales to the elevated repo and prime rates, which have discouraged consumers from seeking vehicle financing. Furthermore, the upward trajectory in vehicle prices, marked by a 10.0% y/y increase, has contributed to the subdued demand.
Escalating global oil prices and a corresponding surge in fuel costs, along with an overall increase in the cost of living, have rendered it increasingly challenging for consumers to consider purchasing new vehicles.
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