Vehicle sales hit another speed bump
A total of 11 721 new vehicles were sold in the 12 months ended January, nearly 10% less than the same period in 2018.
Jo-Maré Duddy – The 666 new vehicles that were sold in Namibia last month was the poorest January sales figure since 2006 and the lowest monthly sales figure since May 2009.
New vehicle sales in January have historically been low, IJG Securities points out in their analysis of the latest statistics. However, compared to January 2018, new vehicle sales plummeted by 21.7% last month.
A total of 11 721 new vehicles were sold in the 12 months ended January. This is 1 286 or 9.9% less than the corresponding period in 2018.
“2019 is thus off to a sluggish start,” IJG says.
According to the analysts, 12-month cumulative new vehicle sales have been declining since December 2015. Last month’s cumulative figure is a drop of 10 943 or 48.3% compared to the peak of 22 664 cumulative new vehicle sales recorded in April 2015, IJG says.
Prospects
Passenger vehicle sales have been impacted by amendments to the Credit Act that requires tighter credit conditions, as well as by reduced government expenditure and depressed consumer confidence in the current economic climate, the firm continues.
“The prospects for new vehicle sales remain dim in the short- to medium-term as government remains committed to fiscal consolidation and the economy remains in a recession, putting pressure on demand and investment,” IJG says.
The mid-year budget review tabled in October last year shows government intends spending N$10 million on vehicles in 2019/20, down from an estimated N$11.9 million in the current fiscal year. Revised vehicle spending in 2017/18 was about N$29.4 million, while actual spending the year before was nearly N$92 million. According to the mid-year budget review, government plans to set aside nearly N$12.9 million for vehicles in 2020/21.
New vehicle sales in January have historically been low, IJG Securities points out in their analysis of the latest statistics. However, compared to January 2018, new vehicle sales plummeted by 21.7% last month.
A total of 11 721 new vehicles were sold in the 12 months ended January. This is 1 286 or 9.9% less than the corresponding period in 2018.
“2019 is thus off to a sluggish start,” IJG says.
According to the analysts, 12-month cumulative new vehicle sales have been declining since December 2015. Last month’s cumulative figure is a drop of 10 943 or 48.3% compared to the peak of 22 664 cumulative new vehicle sales recorded in April 2015, IJG says.
Prospects
Passenger vehicle sales have been impacted by amendments to the Credit Act that requires tighter credit conditions, as well as by reduced government expenditure and depressed consumer confidence in the current economic climate, the firm continues.
“The prospects for new vehicle sales remain dim in the short- to medium-term as government remains committed to fiscal consolidation and the economy remains in a recession, putting pressure on demand and investment,” IJG says.
The mid-year budget review tabled in October last year shows government intends spending N$10 million on vehicles in 2019/20, down from an estimated N$11.9 million in the current fiscal year. Revised vehicle spending in 2017/18 was about N$29.4 million, while actual spending the year before was nearly N$92 million. According to the mid-year budget review, government plans to set aside nearly N$12.9 million for vehicles in 2020/21.
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