The Vehicles and Assets Dealers Union of Ghana (VADUG) has voiced concerns regarding the growing dominance of Chinese car manufacturers within the country.
The organisation has cautioned that this trend is placing immense strain on domestic car retailers and jeopardising thousands of livelihoods across the industry.
During an interview on Rainbow Radio 87.5FM’s Frontline Show, the national president of VADUG, Bernard Ntrakwa, explained that Chinese car makers and assembly firms are progressively managing the entire supply chain—from importation and assembly right through to direct retail sales in Ghana.
This practice, the union claims, has resulted in an imbalanced and unfair playing field for indigenous traders.
He pointed out that domestic dealerships rely on sourcing second-hand cars from international markets including America, Europe, and Japan, which incurs heavy customs duties and taxes ranging between 35 and 50 per cent.
Conversely, Chinese automotive firms bringing in semi-knocked-down (SKD) and completely knocked-down (CKD) vehicle kits enjoy significant tax relief and duty waivers under the current automotive framework of the Ghanaian government.
Mr Ntrakwa maintained that this tax imbalance has enabled Chinese companies to capture a larger portion of the sector, consequently shrinking the market presence of local businesses and leaving their stock unsold for much longer periods.
“We do not oppose foreign investment. But this current trend is unsustainable,” the union said.
He also raised eyebrows over the expanding role of Chinese automotive enterprises in both the wholesale and retail sectors of the Ghanaian car market.
He pointed out that prominent manufacturers from nations like the United States, Japan, Germany, and South Korea have historically partnered with established local dealer networks instead of entering the retail space directly.
In addition to these commercial worries, VADUG cautioned that Ghana is in danger of being flooded with ageing internal combustion engine vehicles, particularly as China fast-tracks its own shift toward electric mobility and aims to scale back its reliance on petrol and diesel cars.
“Without strict regulation from GSA, DVLA, and GIPC, Ghana risks becoming a dumping ground for substandard cars. That is a safety and environmental time bomb,” he added.
By: Rainbowradioonline.com/Ghana