BMI View: We expect the Namibian vehicle sales to contract further in 2017 by 18.0% on the back of its2016 contraction of 21.9%. This will be driven by higher hurdles to vehicle financing coupled with highlyleveraged consumers cutting back on spending.
We forecast total vehicle sales will contract by 18.0% in 2017.
Still high average inflation forecasted at 6.5% for 2017 will drag on consumer spending power.
Highly leveraged consumers will drag down the vehicle sales growth expectation for 2017.
The increased vehicle financing policies will present a barrier to growth in vehicle sales in 2017.
Namibia's volatile currency and increasing cost of living will place significant pressure on consumers'budgets.