All six local assembling companies can supply over 120K vehicles annually – VW Ghana CEO

Jeffery Peprah, the Chief Executive Officer of Volkswagen Ghana, has stated that the six local vehicle assembling companies have the production capacity to supply the country’s vehicle needs.

Speaking on the Citi Breakfast Show on Citi FM on Monday, May 6, Mr Peprah said the total number of vehicles that came onto the market in 2023 was 120,000, out of which a meagre 6,000 were brand new.

“In Ghana, the total vehicles imported is 120,000, and out of these, 6,000 were new vehicles in 2023 and so you see a huge gap between new vehicles and the used vehicle market. Out of the new 6,000, 4,700 were assembled locally and this is coming from six different automobile assembling companies.

“With regards to our capacity at the moment, our total capacity for all the six assemblies that we have in the country now, we have a capacity of 140,000 to 141,000 units that can be produced locally.”

Mr. Peprah also defended the pricing of these locally assembled vehicles, saying the price put on them is worth each purchase.

He enumerated several benefits buyers of locally assembled vehicles will enjoy compared to buying imported second-hand vehicles.

“Looking at the pricing perspective at the moment, our new vehicles locally assembled are very competitive and as well as the things that come with them, especially you have a vehicle locally made with a five-year warrant, which is a very potential thing for the market here. Buyers have a warrant for servicing for five years and that is a big plus for the buyers”

The six automobile assemblers registered under the Ghana Automotive Development Programme (GADP), which include Volkswagen, Toyota, Rana Motors, Sinotruck, Japan Motors and Kantanka, have been calling on the government to restrict the importation of second-hand vehicles to grow the local industry.

Mr. Peprah said if some restrictions are imposed on imports, it will encourage the local companies to scale up their production capacities.

“If we are able to have a locally assembled product and with our capacities growing and once we have the numbers too growing, we will quickly move into more production phase where we will manufacture more products,” he told host Bernard Avle.

Source: citibusinessnews

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