WINDHOEK – Namibia’s demand for vehicles remains strong thanks to government spending and a healthy public appetite for new vehicles.
According to a newly released vehicle sales report by the National Association of Automobile Manufacturers of South Africa (NAAMSA), a total of 1 164 new vehicle sales were recorded in the country last month, reflecting an increase of 3,2 percent from May this year. The monthly increase was a result of higher passenger vehicle sales, while most of the other categories were negative.
“The momentum currently witnessed in the vehicle sales data suggests that Namibian demand is fairly strong and will likely underpin consumption expenditure and real economic growth in 2012. In our view, the strong vehicle sales data increases the probability of a positive economic growth surprise in 2012,” said Romé Mostert, the head of research at Simonis Storm Security, a brokerage firm in Windhoek.
On an annual basis, the rate of increase moderated from 31,6 percent in May to 12,6 per cent in June.
The generally weaker trend is also evident in the fact that the indicator has been lower than the four-month moving average for the third consecutive month.
According to NAAMSA, slower vehicle sales were expected, given that sales are usually deferred to July in order to benefit from discounts and financing specials at the annual motor shows.
Contrasting the slight increase in national vehicle sales, new vehicle sales in Windhoek decreased by 3,4 percent to 746 during June. New vehicle sales in the capital also moderated on an annual basis, increasing by 11,7 percent versus growth of 35 percent the previous month.
“The strong vehicle sales data witnessed over the past 12 months is most probably a reflection of the Targeted Intervention Programme for Employment and Economic Growth (TIPEEG) and government spending coming into effect.
“In our view, TIPEEG will most likely continue to support vehicle sales data towards the end of 2012, with total vehicle sales in 2012 likely to be just short of the 14 000 level, which implies a close to 12 per cent year-on-year increase,” noted Mostert.
As a result of the weaker sales in Windhoek, compared to the rest of Namibia, Windhoek sales as a percentage of total sales dropped to 64,1 percent from 68,4 percent the previous month and below the long-term average of 66,7 percent.