Chamwe Kaira
Namibia’s vehicle market started 2026 on a strong note, with January sales reaching their highest level in ten years.
A total of 1 005 vehicles were sold in January 2026. This is the strongest January performance since 2016. It marks a 4% increase from the 966 units sold in January 2025.
“While this represents a constructive start to the year, sales moderated relative to the final months of 2025, dipping below the three-month moving average. On a month-on-month basis, volumes declined by 11.7%, a pattern that is not uncommon for January, given seasonal adjustments following the typically elevated year-end demand cycle,” economist Almandro Jansen of Simonis Storm said.
He said January’s performance shows that demand remains steady despite the slowdown at the end of 2025.
“January 2026, the strongest January since 2016, confirms that demand remains resilient despite the moderation observed toward the end of 2025,” Jansen said.
Passenger vehicle sales fell from 541 units in December to 495 units in January. This reflects an 8.5% month-on-month decline. On a yearly basis, passenger sales rose by 5.5%.
Jansen said the monthly drop likely reflects a return to normal levels after strong December demand.
“The gradual moderation in interest rates last year has begun filtering through to household borrowing costs, helping to stabilise consumer demand despite ongoing cost-of-living pressures,” said Jansen.
Commercial vehicle sales also declined month-on-month. Sales dropped by 14.6% from 597 units in December to 510 units in January. Year-on-year growth remained positive at 2.6%.
“Importantly, commercial vehicle sales are historically viewed as a forward-looking indicator of economic momentum, often leading broader economic cycles by approximately 12 months.
The sustained strength recorded throughout much of 2025 therefore provides a constructive signal for economic activity in 2026, particularly if business confidence and capital expenditure intentions remain intact.”
Light commercial vehicles led sales, with 440 units sold in January. This represents a 6% increase compared to January 2025. Medium commercial vehicle sales rose to 28 units, up 40% year-on-year. Heavy commercial vehicles increased to 15 units, a 150% rise. Extra-heavy commercial vehicles climbed to 27 units, up 238% compared to the same period last year.
Dealerships accounted for 973 units, or 96.82% of total sales. Rental companies purchased 32 units, making up 3.18% of sales as they prepare for expected tourism growth in 2026. The public sector did not record any vehicle purchases in January, in line with ongoing fiscal consolidation and limited capital spending.
“Overall, January’s performance reflects a vehicle market that remains fundamentally supported by improving macroeconomic conditions, stabilising financing costs, and sector-specific investment momentum,” said Jansen.
