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Auto dealerships in Ghana have projected a 20 percent sales growth in 2017 compared to last year’s sales, saying the policies of the new government in the small West African nation of 27 million are pointers to this projection. Total sales record for last year hovered around 8,000 units against the 10,000 units record in the previous year, according to industry sources.
The new administration of President Nana Akufo-Addo has promised more investment-friendly policies and reduction of taxes to ease the burden of Ghanaian business people. And this is a great news for the auto sector in the country. Only recently, the new government announced the removal of tax on imported spare parts into the country, a decision that is considered a big relief to many Ghanaians, especially spare parts dealers, due to the high cost of auto parts and subsequently contributing to high maintenance costs for vehicle owners.
Reacting to the recent announcement of the removal of tax on imported spare parts in the country, especially its implications for OEMs in terms of after-sales service delivery, a Brand Manager of a leading auto dealership in Accra, the Ghanaian capital, who does not want his name in print told AUTO REPORT AFRICA that “Customers will expect price reduction on the spare parts , so they will bring their cars to the workshops on a regular basis for periodic maintenance and general servicing “ even as he expressed confidence that “workshop business will improve.”
While advising the new Government to introduce measures to encourage more investments in the sector, he said “Government should encourage auto companies to build auto assembling plants with benefit of tax holidays .”
On the projection for increased sales volumes this year compared to last year, he said the industry expects a “20 percent growth in sales as new government has formed .”
