Mr. Eddie Kusi Ankomah, Chief Executive Officer of Erata Motors, has clarified that the recent 15% reduction in vehicle prices is a direct result of the Cedi’s relative stability against the US Dollar and the abolition of the COVID-19 levy.
He firmly refuted claims that the price cut was a defensive move triggered by the influx of Chinese vehicle brands or a fear of market competition.
Speaking in an interview on Frontline on Rainbow Radio 87.5FM, Mr. Ankomah explained that the decision by the Automobile Dealers Union of Ghana (ADUG) aligns with a previous commitment to lower prices once the exchange rate stabilised.
He explained that vehicle costs in Ghana are traditionally driven by the volatility of the exchange rate, high import duties, rising shipping costs, and ongoing pressures within the global supply chain.
With current conditions showing relative stability, he noted it was only proper for dealers to adjust their pricing so that Ghanaian consumers could benefit.
Addressing the “Chinese Vehicle” Narrative
Mr. Ankomah dismissed the idea that competition from Chinese brands influenced their strategy. He pointed out that many dealers avoid selling Chinese vehicles due to the unavailability of spare parts.
“Our decision was not based on the invasion of Chinese cars in Ghana. The stability of the Ghana Cedi against the US Dollar and the abolition of the COVID-19 levy influenced our decision, not any other reasons. There is no competition between Chinese cars and the ones we sell.”
He added “Some of us are currently not prepared to sell these types of cars. We are not interested now. I prefer selling cars to people for which spare parts are readily available. I don’t want a car for which it is difficult to find its engine or any other spare parts in Ghana. We are not discouraging people from buying these cars, but their spare parts are difficult to get and not available in Ghana.”
By: Rainbowradioonline.com/Ghana
