Namibia vehicles market falls for the fifth year in a row. Indeed, Full Year 2019 sales have been 110.395, down 13.1% compared to 2018. Toyota is the undiscussed leader and holds over 40% market 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
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.
Full-Year sales for 2019 have been 10.395, reporting a 13.1% decrease compared to 2018.
Brand-wise, this year the leader Toyota (-12.2%) held 42.4% market share, followed by Volkswagen (-14%), which holds 14.5% share. Nissan (-13.6%) was in the third position and holds 11.2% market share.
The most sold model in the country remains the Toyota Hilux with 2.589 sales, holding 24.9% market share.
