Ghana's Automobile Market - Growth, Trends, and Forecast (2020 - 2025)

The Ghana's Automobile Market is segmented by Vehicle Type (Passenger Cars and Commercial Vehicles) and by Component Type (Auto Ancillaries, Engine, and Tires)

Market Snapshot

Study Period:

2018-2024

Base Year:

2019

Major Players:

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Market Overview

The Ghana’s Automobile Market is expected to register a CAGR of 6.06%.

Ghana being the third biggest economy country among west African countries, is likely to experience growth in the automotive industry during the forecast period, owing to the increase in “Made in Ghana” vehicles, initiated by Kantaka Group in 2016 and increasing skilled-work force in Ghana automotive industry.

The imports on automotive parts and components is likely to increase in the country as some of the democratic parties, like the New Patriotic Party, have planned to reduce corporate tax to around 20-25% and remove Special Import Levy in the country under its manifesto in 2016. 

Scope of the Report

The Ghana's Automobile Market is segmented by Vehicle Type (Passenger Cars and Commercial Vehicles) and by Component Type (Auto Ancillaries, Engine, and Tires)

By Vehicle Type
Motorcycles
Passenger Cars
Commercial Vehicles
By Component Type
Auto Ancillaries
Engine
Tyres

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Key Market Trends

Growing Automobile Industry

Ghana’s manufacturing industry gets good support from the local government, which has enabled it to become tone of the 40 fastest growing industrial productions in the world. Industry currently accounts for a quarter of the GDP but by 2021, it is expected to account for at least 30% of the GDP, and the main driver for the growth will be the automobile industry.

Both commercial and passenger vehicles are forecast to grow at a healthy rate in Ghana, because of the rising vehicle per population ratio, which stood at 50 vehicles per 1000 population in 2010 to 73 vehicles per 1000 population in 2017.

The domestic vehicle production and assembly have substantial multiplier effects for the economy and act as a catalyst for economic growth which in turn leads to an increasing purchasing power. The market has seen continuous positive growth, due to a boost in manufacturing, employment, industrialization, and export revenues.

To further sustain the diverse economic growth in Ghana, there is an increased need for transportation of goods and people, which is one of the key factors for the steady growth of the Ghana automotive market.

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Increasing Passenger Car Demand

New passenger vehicle sales have shown an upward trend from 2,540 new vehicle registration in 2005 to 4,268 in 2018 although a spike in numbers was observed between 2011-2014 with an average of 6450 new vehicle registrations in these years.

Approximately 59% of the new vehicle market is made up of passenger vehicles as per the new vehicle registrations in 2017.

Amidst the growing GDP of the country and rising purchasing power, the passenger vehicle sales are also driven by the government purchases.

Second-hand import vehicles dominate the passenger vehicle segment. A large share of the used vehicles are imported from the United States, as the vehicle specifications in the United States are more in line with the taste and demand of the consumers in Ghana, which is not usually met by entry-level models from Europe.

Due to low disposable income and very high cost associated with new vehicles, used vehicles dominate the Ghana’s automotive retail sector. These vehicles are mainly imported from regions having low resale or residual values of used vehicles like Europe, Japan, and the United States.

A common trend that can be seen is that a small percentage of new vehicles compete against a strong influx of much cheaper used imported vehicles. Vehicles tend to appreciate due to limited supply of vehicles and import duties.

The most popular imported brand is Toyota, which accounts for more than half of the imported vehicles. These are primarily imported from the United States and the Gulf States.

In the absence of affordable finance solutions, used vehicles remain the more attractive option for private vehicle buyers as second-hand passenger cars accounted for about 70% of the passenger vehicles sold in the country in 2017.

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Competitive Landscape

Some of the major players in the market include Toyota, Mahindra & Mahindra, BMW, VW, Kantaka Group, and etc., . Indian automobiles major Mahindra and Mahindra has invested heavily in the country and has made it as a regional hub for the manufacture of its Sports Utility Vehicles.

However, the presence of other international automakers like Toyota, BMW, VW, and etc. with their high brand perspective, reliability, and trust, among the people in Ghana, is likely to provide strong competition for the domestic manufacturer, like Kantaka Group. Mahindra & Mahindra occupied nearly 20% of the imported vehicles in the country, with its popular vehicle models sales, like Genio, XUV, and Xylo.

Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Vehicle Type

      1. 5.1.1 Motorcycles

      2. 5.1.2 Passenger Cars

      3. 5.1.3 Commercial Vehicles

    2. 5.2 By Component Type

      1. 5.2.1 Auto Ancillaries

      2. 5.2.2 Engine

      3. 5.2.3 Tyres

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Kantaka Group

      2. 6.2.2 Mahindra & Mahindra

      3. 6.2.3 Tata Motors

      4. 6.2.4 Bajaj Motors

      5. 6.2.5 Honda Motor Company, Ltd.

      6. 6.2.6 Ford Motor Company

      7. 6.2.7 Mercedes-Benz

      8. 6.2.8 BMW AG

      9. 6.2.9 Hyundai Motor Company

      10. 6.2.10 Nissan Motor Co., Ltd.,

      11. 6.2.11 Hero Group

      12. 6.2.12 Volkswagen Group

      13. 6.2.13 Volvo

      14. 6.2.14 Toyota Motor Corporation

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

** Subject to Availability

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