The Vehicles and Assets Dealers Union of Ghana (VADUG) announced that increasing Chinese automobile brand penetration threatens thousands of jobs. VADUG expressed concern over competition from foreign manufacturers. These manufacturers benefit from tax exemptions under Ghana’s automotive policy.
Chinese automobile manufacturers are increasingly importing, assembling, and retailing vehicles directly in Ghana. Local dealers pay between 35% and 50% in taxes and duties on imported used vehicles. Chinese vehicle assemblers importing semi-knocked-down (SKD) and completely knocked-down (CKD) kits receive duty exemptions.
This tax disparity allows Chinese brands a stronger market foothold, reducing market share for local dealers. This trend also increases the time vehicles remain unsold. Ghana’s automotive policy aims to encourage local assembly. However, it inadvertently creates an unequal competitive environment for traditional dealers.
Bernard Ntrakwa, President of VADUG, spoke at a press conference in Accra on Thursday, June 11, 2026. He stated, “We do not oppose foreign investment. But this current trend is unsustainable.” He highlighted that traditional manufacturers from the US, Japan, Germany, and South Korea typically use local dealership networks. They do not engage directly in retail activities. VADUG also criticised the government’s AI Publican System for customs valuation, claiming it inflates import costs.
VADUG calls on the government to review existing tax and duty structures. The union seeks a more level playing field for local dealers. They also demand stricter enforcement of investment and retail regulations. Authorities should strengthen vehicle quality, safety, and warranty standards. Ghana EXIM Bank should provide financing and capacity-building support for local dealers. Without strict regulation, Ghana risks becoming a destination for older internal combustion engine vehicles, posing safety and environmental risks. This could turn Ghana into a dumping ground as China shifts to electric vehicles.
The union also criticised the AI Publican System for customs valuation at ports. This system assigns inflated values to imported vehicles, increasing import costs. VADUG requests the Ghana Revenue Authority and the government to engage industry stakeholders. They propose reforms, including a flat-rate duty regime for vehicles and spare parts. This would improve transparency and predictability in the sector. These changes are crucial for the survival of local vehicle dealerships and the preservation of jobs.