Vehicles in the secondary market deemed risky
Cars in the secondary market are likely be at higher risk of having mechanical issues, which could prove more costly to own than a newer car with less mileage, analysts at Simonis Storm said.
Given the current economic conditions, the Ministry of Industrialisation and Trade recently announced a temporary relief measure for non-commercial vehicles.
The two years relief measure extends the import age restrictions to twelve years from the current capping age limit of eight years to improve the industry’s performance.
According to Simonis Storm, “while we commend government for being creative and trying to address market shortages, we would not advise individuals to buy older cars.”
Simonis expect shortages of both new and quality second hand cars to remain a constraint on vehicle sales in Namibia, which is likely to drive up prices.
Meanwhile, IJG Securities pointed out that a total of 866 new vehicles were sold in June, which is 96 more than were sold in May and represents a 2.7% year-on-year increase from the 843 vehicles sold in June 2021.
A total of 427 new passenger vehicles were sold during June, an increase of 5.4% month-on-month from the 405 sold in May, but a 0.7% year-on-year decrease from the 430 vehicles sold in June 2021.
In addition, a total of 439 new commercial vehicles were sold in June, representing an increase of 20.3% month-on-month and 6.3% year-on-year. While all three subcategories recorded better sales than in May, the month-on-month increase was primarily driven by a rebound in light commercial vehicle sales of 21.4% month-on-month.
There was a noticeably drop in Toyota’s light commercial vehicle sales in both May and June following the temporary closure of the production plant in KwaZulu-Natal. Despite this, light commercial vehicle sales were still in line with the monthly average for the year as customers switched to other brands who were able to deliver new light commercial vehicles, IJG pointed out.
Moreover, medium- and heavy commercial vehicle sales fell 31.6% year-on-year and 19.0% year-on-year respectively, while light commercial vehicles sales rose 13.3% year-on-year. On a twelve-month cumulative basis, light commercial vehicles sales fell by 4.3% year-on-year to 4 135, medium commercial vehicles fell by 6.3% year-on-year to 178, while heavy commercial vehicles increased by 1.5% year-on-year to 528.
“June’s new vehicle sales figure was in line with the monthly average for the year. On a twelve-month cumulative basis, new passenger vehicle sales have rebounded to the pre-pandemic levels seen in 2019 but seems unlikely to exceed it meaningfully in the short-term,” IJG [email protected]
Given the current economic conditions, the Ministry of Industrialisation and Trade recently announced a temporary relief measure for non-commercial vehicles.
The two years relief measure extends the import age restrictions to twelve years from the current capping age limit of eight years to improve the industry’s performance.
According to Simonis Storm, “while we commend government for being creative and trying to address market shortages, we would not advise individuals to buy older cars.”
Simonis expect shortages of both new and quality second hand cars to remain a constraint on vehicle sales in Namibia, which is likely to drive up prices.
Meanwhile, IJG Securities pointed out that a total of 866 new vehicles were sold in June, which is 96 more than were sold in May and represents a 2.7% year-on-year increase from the 843 vehicles sold in June 2021.
A total of 427 new passenger vehicles were sold during June, an increase of 5.4% month-on-month from the 405 sold in May, but a 0.7% year-on-year decrease from the 430 vehicles sold in June 2021.
In addition, a total of 439 new commercial vehicles were sold in June, representing an increase of 20.3% month-on-month and 6.3% year-on-year. While all three subcategories recorded better sales than in May, the month-on-month increase was primarily driven by a rebound in light commercial vehicle sales of 21.4% month-on-month.
There was a noticeably drop in Toyota’s light commercial vehicle sales in both May and June following the temporary closure of the production plant in KwaZulu-Natal. Despite this, light commercial vehicle sales were still in line with the monthly average for the year as customers switched to other brands who were able to deliver new light commercial vehicles, IJG pointed out.
Moreover, medium- and heavy commercial vehicle sales fell 31.6% year-on-year and 19.0% year-on-year respectively, while light commercial vehicles sales rose 13.3% year-on-year. On a twelve-month cumulative basis, light commercial vehicles sales fell by 4.3% year-on-year to 4 135, medium commercial vehicles fell by 6.3% year-on-year to 178, while heavy commercial vehicles increased by 1.5% year-on-year to 528.
“June’s new vehicle sales figure was in line with the monthly average for the year. On a twelve-month cumulative basis, new passenger vehicle sales have rebounded to the pre-pandemic levels seen in 2019 but seems unlikely to exceed it meaningfully in the short-term,” IJG [email protected]
Comments
Namibian Sun
No comments have been left on this article