"Difficult economic conditions are set to prevail in the next half 2018, putting more stress on the motor vehicle industry," says Johannes.
"To improve car sales, we have observed numerous special schemes like the 6 months payment holiday and prime less 4 percent on new car sales. Namibia's automobile sales for May 2018 climbed 11.3% to 918 units following a huge decline of 27.8% reported in the prior month, monetary company Simonis Storm Securities stated on Thursday.
Meameno Johannes, an economist at the brokerage and investment advisory company observed that the uptick was mainly supported by light industrial vehicles that rose by 110 units or +27.7percent in May.
"This comes following light commercial vehicle fell 31% in April. Despite the monthly increases observed in May, vehicles sales stay beneath the 10-year typical of 1240 units," says Johannes.
"Our view indicates the lack of spending by consumers in the new automobile distance and this is evident from the low instalment credit (-5.1percent y-o-y). New vehicle sales stood in 4805 units at the end of May 2018, lower than 5536 units recorded over the same interval in 2017 -- a 13.2percent reduction".