The Chief Executive Officer of African Association of Automotive Manufacturers (AAAM), Mr Dave Coffey says the implementation of the auto policy will
The Chief Executive Officer of African Association of Automotive Manufacturers (AAAM), Mr Dave Coffey says the implementation of the auto policy will provide jobs and access for second hand cars- car dealers in the country.
According to him these second vehicle dealers also known as ‘used car dealers ’ will have access to used locally assembled vehicles under the policy and will no longer have to depend on imported used vehicles from abroad if the policy is implemented.
“All the local assemblers together with their capacity can produce 140,000 a year, the demand for new vehicles in the country is 6000 to 8000, there are some concerns that these local assemblers can’t keep up with the demand by used vehicles dealers if the policy comes into effect; the demand for used vehicles is 90,000 a year so our vision is to transition the used vehicles from the imported to vehicles coming from Ghana or Africa,’ he told the Graphic Business in an interview in
He allayed the fears from used vehicles dealers saying that patience will be their virtue when locally assembled vehicles are mass produced and they become used vehicles to be patronized by those who can’t afford new vehicles.
“A used vehicles made in Ghana or Africa attracts vehicle finance from financial institutions which is a good proposition compared to the imported used vehicles,” he stated.
He added that his outfit is geared towards realizing the implementation of the policy which will be beneficial for both customers of new and used vehicles.
Right time
Mr Coffey admitted that with the country gearing up for an election and the issue being delicately poised it will be difficult for the government to fully implement the policy.
“There are vehicle manufacturers who want to come and establish plants in the country but they are not going to do that until the policy is implemented, we must get on and implement it,” he stated.
Call for policy implementation
Mr Coffey’s call for the implementation of the policy follows a similar calls by stakeholders in the automotive industry for the implementation of the policy.
Over the past month, the leadership of the Japan Motors Ghana, the Ghana Automotive Development Centre,(GADC), Volkswagen Ghana(VW Ghana), and the Ghana Automotive Distributors Association(GADA) have all called for the speedy implementation of the policy to help propel the auto industry into a mainstream economic powerhouse in the country.
Government on the other hand has resolved to implement the
GADP
The Ghana Automotive and Development Policy (GADP) also known as ‘The Auto Policy’ was fashioned out by the Ministry of Trade and Industry in 2019 and was geared towards making Ghana a fully integrated and competitive industrial hub of the automotive industry in the West African sub-region.
It also aims to generate highly skilled jobs in automotive assembly and the manufacture of components and parts, with spillover effects into other sectors of the economy, while establishing an asset-based vehicle financing scheme for locally manufactured vehicles to ensure affordability for vehicle buyers. This is expected to improve balance of payments through competitive import substitution and export market development while also improving vehicle safety and environmental standards