Chamwe Kaira
Namibia’s vehicle market is expected to record steady growth in 2026, supported by improved credit conditions, lower interest rates and changes in regional vehicle supply chains.
Vehicle sales eased slightly toward the end of 2025, but demand remained firm.
According to Simonis Storm, this points to a stable expansion in the year ahead rather than a slowdown.
New vehicle sales peaked at 1 320 units in March 2025 before falling to 1 138 units in December, down 8.5% from November’s 1 244 units.
Despite the monthly decline, December sales were 13.8% higher than the 1 093 units sold in December 2024.
Total sales for the year reached 14 494 units, the strongest annual performance since 2015.
Credit growth slowed toward the end of the year. Private sector credit extension eased to 4.5% year on year in November from 4.7% in October.
Analysts view this as a stabilisation of the credit cycle rather than a sign of weaker demand.
Monetary conditions are expected to support vehicle sales in 2026.
With inflation forecast to remain contained, the Bank of Namibia is expected to cut the repo rate by a further 50 basis points through two 25-basis-point reductions, bringing the policy rate to 6%.
Lower interest rates are expected to improve instalment affordability.
Corporate demand continues to drive the market, particularly for fleet vehicles in logistics, agriculture, mining, tourism and energy.
Household demand remains cautious as living costs rise. Bakkies and light commercial vehicles are expected to lead sales, while passenger vehicle demand is likely to recover more slowly.
Changes in regional vehicle supply chains are also shaping the market. Chinese vehicle brands are increasing their presence in Southern Africa.
The planned acquisition of Nissan’s Rosslyn plant in South Africa by Chery points to growing local production, stronger supplier networks and shorter supply chains.
For Namibia, the acquisition could mean improved pricing and better availability of vehicles and spare parts.
Chinese brands already compete strongly on price and features, while Japanese manufacturers continue to scale back production.
German brands face affordability pressures. This points to a gradual shift in market share rather than a short-term cycle.
Looking ahead, the vehicle market is expected to grow at a measured pace in 2026, supported by fleet demand and easier credit conditions.
The expansion of Chinese manufacturers is likely to play a growing role in shaping the market, with dealers, financiers and policymakers needing to adjust to these changes.
Caption
Vehicle sales slowed slightly toward the end of 2025; underlying demand remains strong.
- Photo: Contributed
