Multiple assemblers in Ghana driving down car prices

The Chief Executive Officer of Japan Motors Ghana, Salem Kalmoni, says Ghana’s automotive assembly industry is highly competitive, with no single player holding monopoly power, a situation he believes is helping to drive down vehicle prices.

He noted that imported vehicles into Ghana attract an effective tax burden of about 20–21.9% through VAT and other levies. According to him, recent VAT-related adjustments have contributed to reductions in vehicle prices, although they have also intensified competition between locally assembled vehicles and importers, particularly affecting parallel importers and used-car dealers.

Speaking at the Citi Business Roundtable on the theme “Driving Ghana Forward: The state of the automotive assembly industry and its contribution to the economy,” Mr. Kalmoni explained that the presence of multiple assembly plants has created a market structure that prevents any single operator from controlling prices.

“There are 10 bona fide assemblies in Ghana, with 7 assembly plants. We are competitors; it’s not like there’s a monopoly,” Mr. Kalmoni added.

He maintained that the competitive environment has contributed to a notable reduction in vehicle prices, which he said ultimately benefits consumers.

“Our prices have come down significantly, and it has been passed on to the consumer,” he said.

Mr. Kalmoni further argued that in a monopolistic or less competitive market, such price reductions would not have been possible.

He also observed that the increased competition has created pressure within parts of the market, particularly among parallel importers, who he said are feeling the impact of lower prices in the new vehicle segment.

Ghana’s automotive assembly sector has expanded in recent years, supported by government policy aimed at boosting local vehicle production, reducing imports, and strengthening industrial development.