Namibia vehicles market falls for the sixth year in a row. Indeed, Full Year 2020 sales have been 7.614, down 26.8% compared to 2019. Toyota is the undiscussed leader and gains 1.9% share.
Economic Environment
The Namibian economy, after strong growth averaging 5.6% between 2010 and 2016, driven by high public spending, construction of new mines, and favorable commodity prices, has entered a recession. Real GDP growth contracted by 0.9% in 2017 and an estimated 0.1% in 2018, thanks to domestic and external factors, including a sharp reduction in public spending necessitated by falling revenues and weak growth in trading partner economies, and subdued household demand.
With increased deficit financing requirements, public debt stock rose from 29.5% of GDP to 42% in 2018, 64% of which is domestic. The surge in domestic borrowing has exerted pressure on the small domestic debt market, with the risk of crowding out private credit.
Market Trend
The Namibian vehicle market has been affected in 2020 by the global COVID-19 pandemic, which impacted sales significantly.
Namibian new vehicles market grew up substantially in the period 2008-2014 hitting a record of 21.836 units before to start declining with four years in a row. In 2018 figures were at 11.863, down a disappointing 11.6% from the previous year, while in 2019 10.395 units have been sold, reporting a 13.1% decrease compared to 2018.
Brand-wise, this year the leader Toyota (-23.5%) held 44.3% market share, followed by Volkswagen (-25.9%), which holds 14.7% share. Nissan (-28.6%) was in the third position and holds 11% market share.
The most sold model in the country remains the Toyota Hilux with 2.069 sales (-20.1%), holding 27.2% market share.
