More cars sold in Nov as dealers stock up

19 Dec 2013 14:10pm
WINDHOEK, 19 DEC (NAMPA) – The month of November saw the highest number of cars sold in Namibia compared to the same period in previous years as car dealers tried to stockpile as many vehicles as possible before possible strike action in South Africa.
Simonis Storm Securities (SSS) in its Namibia New Vehicle Sales report for November 2013 indicated that a recorded volume of 1 583 units were sold, which translated to a monthly increase of 9,47 per cent and record high year-on-year sales of 36,9 per cent.
“Dealers are worried about next year’s stock as the market indicated that the strike of the South African Transport and Allied Workers union has had an impact on the supply of certain vehicle makes. Most dealers attempt to stockpile as many units as possible when the slightest hint of strike action is announced,” SSS Economist Daniel Kavishe said in a media statement issued on Wednesday.
He said looking forward, dealers are worried that even though demand is growing unabated, if the general unrest within the South African market continues, future supply will be hampered.
Meanwhile, when Nampa spoke to some local dealers in the capital on Thursday, they confirmed that they ordered more units to keep up with demand and to have some extra units available after the festive period.
Head of Marketing at the Pupkewitz Motor Division, Anton Westraadt said his company acquired more vehicles last month to provide customers with the best services.
“We ordered a few more units to satisfy our market demand,” he noted.
South Africa (SA) was in the middle of the so-called strike season in September this year where workers in various sectors of the economy announced demands for wage hikes.
According to SSS, November is quite often the month before actual strike action in SA.
The year-to-date vehicle sales stood at 14 863 units, thus confirming initial estimates that year-end sales will exceed 15 000 units.
Kavishe said the year-on-year growth of 36,9 per cent is not simply on the back of a lower base, but rather indicated an increasing demand for new vehicles for a period when vehicle purchases generally decline. He said the record high vehicle sales numbers further confirmed the re-smoothing of the data provided by the National Association of Automobile Manufacturers of South Africa (NAAMSA), which will hopefully lead to more accurate data being supplied on a monthly basis.
Light commercial vehicles outperformed with a monthly increase of 14,9 per cent, which led to an overall spike in the total volume. Year-on-year growth numbers stood at 45,9 per cent, which is the highest growth recorded within the two years, which is indicative of improved sentiment amongst businesses.
Toyota led the charge with 738 vehicle units sold, while Volkswagen followed with 171 units sold. Other vehicle makes that performed relatively well in November are Ford with 132 units sold and Chevrolet with 104 units sold. Amongst the popular German manufacturers, Mercedes Benz seized the day with 60 units sold - the highest number recorded this year. Audi sold 18 units and BMW 14 units as current demand seems to exceed the supply.
“The low interest rate environment and a renewed confidence within the business environment seem to be spurring growth as the year slowly winds down. The overall pickup in sales in the commercial vehicle category augments our belief that companies are confident about the current business environment,” he added.