As per the NAA Manufacturers South Africa, 1,054 new automobiles were sold in Namibia in March 2022, up from 883 in the second and third months of 2021. Since May 2019, the number of new cars sold each month hasn't topped 1,000. Correspondingly, in March 2022, personal and light industrial vehicle sales accounted for 50.2 percent and 44.3 percent of all new auto sales.
Vehicle sales were as follows Nissan (5.6%), Volkswagen (13.2%), and Toyota (47.5%), Ford (4.4%), KIA (4.2%) in March 2022. Theo Klein, an economist for Simonis Storm, suggested that the N$13 billion in life insurance paid in the mid of 2020 and 2021 may cause a strong domestic demand for new cars.
This may be one reason for the high domestic demand for new cars, which has resulted in significant backlogs for several brands, as previously noted. This may also help to clarify why household personal credit growth has been modest to flat, according to Klein. Klein stated that in addition to greater costs associated with operating automobiles, such as higher gasoline and spares prices, Namibian customers might anticipate car prices to keep growing in 2022.
"In an environment of rising borrowing rates, we also anticipate a bit decreased demand for cars," Kelin said.
