Market Size of Ghana Automobile Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.93 Billion |
| Market Size (2029) | USD 2.07 Billion |
| CAGR (2024 - 2029) | < 1.50 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Ghana Automobile Market Analysis
The Ghana Automobile Market size is estimated at USD 1.93 billion in 2024, and is expected to reach USD 2.07 billion by 2029, growing at a CAGR of less than 1.5% during the forecast period (2024-2029).
The automotive industry in the country consists of retailers of imported used vehicles and a few distributors who deal with retailing newly manufactured vehicles. The country imports about 100,000 vehicles per year. The United States, Japan, and Germany are the country's leading suppliers. Ghana is the third biggest economy among West African countries. It is expected 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 the increasing skilled workforce in the Ghanaian automotive industry.
Ghana has prohibited the import of vehicles older than ten years in an effort to encourage automakers to establish factories in the West African country. Used cars now account for roughly 70% of vehicle imports in Ghana. The new legislation also includes import-duty exemptions for automakers that manufacture or assemble vehicles in the country. According to Bloomberg, Volkswagen, Nissan, Toyota, Suzuki, and Renault are among the companies that are considered a significant presence in Ghana. Ghana hopes to become a car manufacturing hub for West Africa, a region with a population of over 380 million people. Carmakers who enter the country must consider offering car loan services. Car loans are now uncommon in Africa, prompting many people to purchase used vehicles instead.
In the short term, considering Ghana's present fiscal constraints, the government has devised plans to introduce 1,000 electric buses, along with the necessary charging and maintenance infrastructure, for both intra-city (40%) and intercity (60%) transportation services. By 2050, Ghana aims to have 32%, equivalent to 12,027 electric public buses, operational nationwide.
This initiative involves the assembly of 500 Complete Built Unit (CBU) electric buses and 500 Semi-Knocked-Down (SKD) buses in collaboration with local assemblers, fostering a productive partnership on Ghanaian soil (International Trade Administration, 2023).
