Vehicle sales contract remarkably
Vehicle sales contracted sharply at the end of July 2017, reflecting a 23.5% decrease. This is also a sharp decline when compared to the same period in 2016.
This was according to an assessment carried out by Simonis Storm recently. According to them, year-to-date, only 15 523 vehicles had been sold.
While year-to-date figures have been trending downward, vehicle sales showed a slight uptick when measured on a monthly basis Simonis Storm noted.
“On a monthly basis, however, overall vehicle sales picked up by 10.3% to 1346 units. This was particularly reflected in the category of light commercial vehicles, supported by continued stronger demand in the rental market, as Namibia's tourist season continues,” said Simonis Storm.
The slight improvement in vehicle sales on a monthly basis was not cause to believe that there was an improvement in the economic climate, Simonis Storm said.
“While we note a moderate rebound in vehicle sales, we believe that this reflects a seasonal pattern and should not be construed as a reflection of an improvement in economic conditions locally, as private sector credit extension continues to trend downwards. We thus expect overall vehicle sales to return on its downward spiral by the beginning of the fourth quarter of 2017 as the Namibian tourist season ends,” said Simonis Storm.
In its assessment, IJG also noted that vehicle sales would be affected to changes in the credit agreement act and slowed economic growth.
“Overall vehicle sales remained sluggish in July, continuing on almost the same trend as in 2016, showing some positive signs before trending downwards midway through the year. Continued fiscal tightening, evident through lower government spending on capital assets, slower economic growth, waning consumer discretionary income as well as the credit agreement act have been the main impediments on new vehicles sold,” said IJG.
While a slight uptick had been observed for the month of April, vehicle sale figures were far lower than what had been observed in prior years.
“While there has been a sizeable increase in total vehicle sales since April this year, year-to-date and year-on-year data is still depressed compared to previous years,” IJG concluded.
STAFF REPORTER
This was according to an assessment carried out by Simonis Storm recently. According to them, year-to-date, only 15 523 vehicles had been sold.
While year-to-date figures have been trending downward, vehicle sales showed a slight uptick when measured on a monthly basis Simonis Storm noted.
“On a monthly basis, however, overall vehicle sales picked up by 10.3% to 1346 units. This was particularly reflected in the category of light commercial vehicles, supported by continued stronger demand in the rental market, as Namibia's tourist season continues,” said Simonis Storm.
The slight improvement in vehicle sales on a monthly basis was not cause to believe that there was an improvement in the economic climate, Simonis Storm said.
“While we note a moderate rebound in vehicle sales, we believe that this reflects a seasonal pattern and should not be construed as a reflection of an improvement in economic conditions locally, as private sector credit extension continues to trend downwards. We thus expect overall vehicle sales to return on its downward spiral by the beginning of the fourth quarter of 2017 as the Namibian tourist season ends,” said Simonis Storm.
In its assessment, IJG also noted that vehicle sales would be affected to changes in the credit agreement act and slowed economic growth.
“Overall vehicle sales remained sluggish in July, continuing on almost the same trend as in 2016, showing some positive signs before trending downwards midway through the year. Continued fiscal tightening, evident through lower government spending on capital assets, slower economic growth, waning consumer discretionary income as well as the credit agreement act have been the main impediments on new vehicles sold,” said IJG.
While a slight uptick had been observed for the month of April, vehicle sale figures were far lower than what had been observed in prior years.
“While there has been a sizeable increase in total vehicle sales since April this year, year-to-date and year-on-year data is still depressed compared to previous years,” IJG concluded.
STAFF REPORTER
Comments
Namibian Sun
No comments have been left on this article