Volkswagen laments slow purchase of locally manufactured cars in Ghana

Martina Biene, the Chairperson and Managing Director of Volkswagen (VW) Group South Africa, expressed her concerns over the sluggish adoption of locally manufactured vehicles in Ghana.

Speaking at the media launch of the newly assembled Virtus Sedan car in Accra, Biene highlighted the challenges facing the automotive industry in the country.

In 2023, only 6,000 locally manufactured or assembled cars were sold in Ghana, a figure that falls short of the industry's expectations. Biene, whose outfit operates the VW Assembly plant in Accra, emphasized that this trend poses a threat to future investments in the sector.

Volkswagen Group has already invested approximately US$54 million in establishing its Semi Knocked Down (SKD) production plant in Accra-Tema, with a capacity to produce over 12,000 vehicles annually. However, the low demand for new cars could hinder further investments unless the government implements certain policy decisions effectively.

Biene stressed the importance of restricting the importation of salvaged cars, a measure supported by the industry, to boost the adoption of domestically manufactured vehicles. She also highlighted the significance of the Ghana Automotive Development Policy (GADP) but emphasized the need for enforcement of key elements, particularly the ban on second-hand cars and mortgage facilitation for credit purchases.

The promising progress of the automotive industry in Ghana is the envy of other African countries, especially in West Africa. However, Ghana is not fully harnessing the opportunities presented by GADP to grow into a thriving new car market, said Biene.

As the President of the African Association of Automotive Manufacturers (AAAM), Biene believes that implementing the outstanding elements of the GADP could quadruple the sales volume in the short term. She reiterated Volkswagen's commitment to Ghana, emphasizing its role in the company's African ambition to become the leading provider of sustainable mobility on the continent.

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