Namibia's new vehicle market remains robust, with sales during the first eight months of the year reaching their highest level for this period since 2015.

Despite a slowdown in August, the market remains ahead of last year, with more than 10,000 new vehicles sold between January and August.

The latest figures from IJG Securities show that August sales slowed down from the exceptionally strong levels recorded in July. However, sales were still higher than in the same month last year.

Commercial vehicles continued to account for a larger share of monthly sales than passenger vehicles, with 746 commercial units sold in August compared to 634 passenger vehicles.

Within the commercial segment, light commercial vehicles made up the bulk of sales, while heavy commercial vehicles recorded their strongest monthly performance in almost three decades.

IJG says the strength in commercial vehicle demand points to continued business activity and investment, particularly in sectors such as mining, logistics and construction.

The overall vehicle market is, however, facing rising operating costs. Transport inflation accelerated sharply in August, driven largely by higher petrol and diesel prices.

The cost of purchasing vehicles remained relatively restrained, suggesting that consumers and businesses are currently feeling more pressure from the cost of operating vehicles than from the cost of buying them.

The market's rolling 12-month sales also reached their highest level in almost a decade, pointing to sustained demand despite the challenging cost environment.