Newly assembled Toyota Prius hybrid vehicles
Newly assembled Toyota Prius hybrid vehicles

Namibia’s cumulative new vehicle sales fell to the lowest level in five years on a rolling 12-month basis, according to research firm IJG.

Statistics released on Tuesday by IJG analysts show that new vehicle sales are now down 41.7 percent from their peak, and the plunge is attributed to the recessionary environment that Namibia is in, characterized by depressed business and consumer confidence, as well as lower government spending.

“Tighter credit conditions and indebted consumers further hampered new vehicle sales. The continued slowdown in commercial vehicle sales remains worrisome as this is an indication of lower capital expenditure by corporates and lower business confidence in general,” the firm said.

While vehicle sales may not drop much further, a rapid recovery in these metrics will only be seen once government resumes normal expenditure patterns and business confidence improves, IJG said.

Meanwhile, the statistics released show that Toyota continued to lead the market for new vehicle sales in 2017 with 35.8 percent of the passenger vehicle market, followed by Volkswagen with a 24.8 percent share.

In the medium commercial section of the market, Hino led the pack with a 35.9 percent market share, followed by Iveco at 25.1 percent.

The heavy and extra heavy category was dominated by Scania with 36.3 percent of new vehicle sales. Enditem

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