Car dealers call off demo against regulation of importation of use vehicles

The Automobile Dealers Union Ghana (ADUG), which earlier threatened to demonstrate against a possible ban on the importation of some categories of salvaged and second-hand vehicles into the country, has rescinded its decision.

The Majority Leader of Parliament, Osei Kyei Mensah Bonsu recently disclosed plans to put in place a regulatory framework for the importation of second-hand and salvaged vehicles.

This is captured in the Customs Amendment Bill which is on the agenda of Parliament for consideration.

The General Secretary of the Union, Clifford Ansu, said his outfit is instead opting for dialogue.

“As at now, the demonstration is not going to happen because if we say, we are going to go about those things, a lot of things are going to happen in the system and assemblers have already come on board and everything is under control. So there is no need that we should also go and say something to jeopardise the whole process but we should come on a roundtable and know the way forward.”

Budding auto industry

The Majority Leader alluded to the setting up of assembly plants being set up by a number of car manufacturing companies when he speaking about the Customs Amendment Bill.

In August 2019, Toyota and Suzuki became the latest companies to announce plans to set up car assembling plants in Ghana.

Toyota and Suzuki joined Volkswagen, Nissan and Sinotruk as major automobile companies which have committed to the Ghanaian market.

These firms are going to face stiff competition from the second-hand car market.

The Ghana Revenue Authority (GRA) Customs Division notes that between 2005 and 2016, more than 1 million vehicles were imported into the country; representing an average of 100,000 cars per year.

Out of the total fleet of vehicles imported within the period under review, 80 percent are said to be secondhand vehicles.