Ghana Automobile Market Size

Ghana Automotive Market Analysis

The Ghanaian automobile market is expected to reach USD 10.64 billion, registering a CAGR of 15% during the forecast period.

Due to the outbreak of COVID-19, the automobile industry in Ghana faced considerable delays in 2020 due to supply chain disruptions in major automotive production hubs worldwide, leading to delays in the shipment of critical auto components to carry out vehicle assembly operations. However, the automotive industry witnessed significant growth in 2021, likely enhancing the demand for vehicles during the forecast period.

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 importers. The automotive industry contributes a quarter of the country's GDP. However, by 2022, it anticipates accounting for at least 30% of GDP, and the primary reason for the increase may be the automobile industry. Ghana is the third biggest economic country among West African countries. It 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 the increasing skilled-work force in the Ghanaian automotive industry.

Over the long term, the country's imports of automotive parts and components are likely to increase. The government has planned to reduce corporate tax to around 20-25% and remove special imports levied in the country under its manifesto. Ghana imports about 100,000 vehicles per year. About 90% are used vehicles, with an estimated value of USD 1.14 billion annually. The United States, Japan, and Germany are the leading suppliers.