Ghana is of special interest for the US automotive industry because the automobile retailers in this African nation are selling mostly imported used vehicles. Although there are a few who are into distributing brand new vehicles, about 90% of the 100,000 vehicles that arrive in this country each year, are used automobiles. Actually, American used car dealers are competing with Japanese and German suppliers, as the Ghanaian annual vehicle import is reportedly worth US$1.14 billion.
Still, Ghana has ambitions of attracting Original Equipment Manufacturers (OEMs) to set up business in the country to make the price of new automobiles in the market, more affordable to Ghanaians. According to reports, manufacturers of Toyota, Nissan, Suzuki and Volkswagen have already signed assembly agreements. In addition, the OEMs agreed to the government of Ghana’s Automotive Development Policy, which aims to ensure new vehicles comply with safety and environmental measures.
Local Car Manufacturing in Ghana Using Knockdown Kits
In 1994, a local company called Kantanka Automobile Company Ltd ventured into the business of manufacturing vehicles in Ghana. However, the company produced vehicles by assembling automotive parts imported from China, known Completely Knocked Down (CKD) kits. CKD kits are actually a collection of automobile parts, being exported by China to local car manufacturers in third world developing countries like Ghana.
CKDs enabled Kantanka to offer affordably priced sedans, SUVs and some government military vehicles. However, Ghana consumers had several concerns about the durability of automobiles made of China-manufactured auto parts. As a result, cars assembled from CKDs have received less attention.
Nonetheless, Ghana gives various tax incentives to OEMs, as stated in the 2020 Customs Amendment Act, on Act 1014. OEMs that will invest to bring their car manufacturing operations in Ghana, will have duty-free access to a vast selection of other African countries and regions by virtue of the nascent African Continental Free Trade Agreement (AfCFTA).
Most Popular Brands of Used Vehicles in Ghana’s Automobile Market
Suppliers of used cars are advised to first check with the U.S. Commercial Service Ghana. This is mainly because most Ghanaian importers of used cars look for suppliers of popular used auto brands, OEMs and auto parts commonly needed by providers of aftermarket services to used car owners.
In Ghana, brand and availability of spare parts are the primary factors influencing the demand for used vehicles. Actually there are five brands of cars that are highly in demand in Ghana’s used car market, namely: Toyota Corolla, Toyota Land Cruiser, Toyota Camry, Hyundai 110 and Hyundai Accent. The reasons why these brands are the most popular choices include fuel efficiency, low maintenance costs and resale value.
In the US, the popular choices of used cars aside from Toyota, include Chevrolet, Fiat, Honda and Kia. Earnhardt Auto Centers in Phoenix, Arizona actually has an extensive inventory of pre-owned cars in 17 locations. Our advice is to first check with the car dealer’s No Bull website, to find out in which of the 17 locations you can find the brand and model of pre-owned car you are looking for.