Botswana 2020. Car market down five years in a row

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Botswana car market
The 2021 Ford F-150

Botswana vehicles market in 2020 reported substantial losses as the pandemic influences sales. Indeed, 3.179 units were sold Year To Date until August, losing 22.1% compared to last year. Toyota maintains leadership and performs better than the market average, losing 17.3%, while the top 10 gainer was Volkswagen, with only a 6% decrease in sales.

Economic Environment

The economy will have deteriorated sharply in the second quarter, as Covid-19 headwinds are set to have hammered activity. Containment measures at home likely shredded household incomes and delayed non-essential spending, while depressed business sentiment, particularly in the key mining and quarrying sector, will have hindered investment activity.

Meanwhile, diamond exports, which account for around 90% of all exports, nosedived by 99.4% year-on-year in the second quarter, largely owing to pandemic-related lockdowns and disrupted supply chains.

Turning to Q3, although the easing of lockdown measures should provide a boost, a persistently high infection rate could weigh on activity.

Market Trend Year To Date

In Botswana 3.179 units have been sold until august 2020, reporting a loss of 22.1% compared to last year. This negative trend in the market reflects the impact of the pandemic in the region, where infections reached a peak between July and August.

Brand-wise, Toyota remains in leadership, while performing better than the market trend (-17.3%),  followed by Nissan, falling by 29.8%. The worst top 10 performance was registered by Mazda with a 38.1% decrease in sales. Meanwhile, the top  10 performer is Volkswagen, decreasing sales by only 6% and jumping 2 spots in the ranking.

Medium Terms Market Trend

Botswana’s vehicles market was influenced by the slow domestic economy, which reduced the consumer’s demand for new vehicles. Indeed, the car market reported a contraction in 2016 and 2017, after a peak of 7.650 sales hit in 2015, registering 6.743 units in 2017.

In 2018, the market kept falling, signing the third consecutive year of decline in a row. Indeed, the year ended with sales at 6.468, down 3.5%.

In 2019 the market followed the previous year’s trend, the year ended with 6.205 sales, down 4%.

In Q1 2020 there were 1.623 units sold, only a 1.7% decrease compared to last year. In the First Half of 2020 the market dropped down to 2.078, a 33% decrease in sales.

Tables with sales figures

In the tables below we report sales for the Top 10 Brands

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