Ghana Automobile Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.93 Billion |
| Market Size (2029) | USD 2.08 Billion |
| CAGR (2024 - 2029) | 1.55 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Ghana Automobile Market Analysis
The Ghana Automobile Market size is estimated at USD 1.93 billion in 2024, and is expected to reach USD 2.08 billion by 2029, growing at a CAGR of 1.55% during the forecast period (2024-2029).
The automotive industry in Ghana consists of retailers of imported used vehicles and a few distributors who retail newly manufactured vehicles. The country imports about 100,000 vehicles per year. The United States, Japan, and Germany are the country's leading suppliers. Ghana is the third biggest economy among West African countries, and it is expected to experience growth in the automotive industry during the forecast period, owing to the increase in 'Made in Ghana' vehicles initiated by Kantaka Group in 2016 and the increasing skilled workforce in the Ghanaian automotive industry.
Ghana has prohibited the import of vehicles older than ten years in an effort to encourage automakers to establish factories in the West African country. Used vehicles account for more than 70% of vehicle imports in Ghana. The new legislation also includes import-duty exemptions for automakers that manufacture or assemble vehicles in the country.
According to Bloomberg, Volkswagen, Nissan, Toyota, Suzuki, and Renault are among the companies that are considered a significant presence in Ghana. The country hopes to become a car manufacturing hub for West Africa, a region with a population of over 380 million people. Carmakers who enter the country must consider offering car loan services. Car loans are now uncommon in Africa, prompting many people to purchase used vehicles instead.
In the short term, considering Ghana's present fiscal constraints, the government has devised plans to introduce 1,000 electric buses, along with the necessary charging and maintenance infrastructure, for both intra-city (40%) and intercity (60%) transportation services. By 2050, Ghana aims to have 32%, equivalent to 12,027 electric public buses, operational nationwide.
According to the International Trade Administration, this initiative involves the assembly of 500 complete built-unit (CBU) electric buses and 500 semi-knocked-down (SKD) buses in collaboration with local assemblers, fostering a productive partnership on Ghanaian soil.
Ghana Automobile Market Trends
Passenger Car Segment to Hold Majority of the Market Share
Passenger cars account for the majority of the share by vehicle type, owing to the aggressive government strategies to enhance and improve domestic car manufacturing facilities. Rising investments by automakers to expand their vehicle assembly plant also contribute to the growth of the segment.
Used passenger cars dominate the Ghanaian passenger car segment, owing to their affordability compared to their counterparts. Most of the used cars in Ghana are imported from Japan, Germany, and the United States.
Hence, to develop the domestic automotive manufacturing capability and subsequent expansion of the new car market, the Ghanaian government is taking active initiatives to attract investment in the automotive sector. In recent years, multiple international automakers have announced significant investments in the country to develop vehicle assembly plants. For example,
- In June 2023, Kia Corporation’s official distributor in Ghana “Rana Motors” launched its state-of-the-art assembly plant in the country. This marked a major milestone in the company's expansion strategy in the African continent. Focused on Western Africa, this strategic move positions Kia as a key player in the region's automotive industry.
- In March 2023, the Caretaker Minister of Trade and Industry inaugurated a vehicle assembly plant of the German automaker Volkswagen at the Free Zones Enclave in Tema. The company invested USD 8 million for the construction of this plant to integrate the lucrative opportunity that the Ghanaian automotive market presents.
The Ghanaian government is also planning to implement initiatives to reform the automotive sector under the Electric Vehicle Policy Plan. One of the major strategies that the government is planning to implement is to ban the import of petrol and diesel cars in the country by 2024. This move is to assist the growth of the electric passenger car market. Owing to the above-mentioned factors, the passenger car segment in Ghana is expected to witness a rapid surge during the forecast period.
Electric Vehicle Propulsion Witness Fastest Growth Rate
Ghana has identified transportation as one of its key areas for adaptation and resilience, aiming to decrease emissions by 64 million metric tons of CO2 equivalent (MtCO2e) by 2030. In 2016, road transportation alone accounted for 11.11% of Ghana's overall CO2 emissions, and since 2000, it has contributed to 59.9% of the cumulative carbon emissions, according to the Ghana Environmental Protection Agency.
Increasing the government’s effort to promote the adoption of electric vehicles and expanding the electric vehicles export market are major determinants for the demand for electric vehicles in the country. Constructive government policies are expected to positively impact the demand in the target market during the forecast period.
The 2024 Budget Speech delivered by Ghana's Minister for Finance and Economic Planning in November 2023 included notable incentives to promote electric vehicles. Specifically, the following tax reliefs were prioritized for implementation:
- Import duties on electric vehicles used for public transportation will be waived for a duration of 8 years.
- Import duties on semi-knocked down and completely knocked down electric vehicles imported by registered EV assembly companies in Ghana will be waived for a period of 8 years.
- The zero rate of value-added tax (VAT) on locally assembled vehicles will be extended for an additional two years.
In recent years, the Ghanaian government has been actively focusing on improving the country's electric vehicle charging infrastructure. The Electricity Company of Ghana (ECG) signed an agreement with a local Ghanaian company to install a total of 200 chargers across Southern Ghana in the first phase of the project.
- In June 2023, the Vice-President of Ghana disclosed that a Ghana-based company will be commencing the operation of its electric vehicle assembly plant in Ghana starting in 2024.
Owing to the above-mentioned factors, the electric vehicle segment of the market is expected to showcase rapid growth during the forecast period.
Ghana Automobile Industry Overview
The Ghanaian automobile market is moderately fragmented, with a few players such as Toyota Motors, Nissan Motors, Suzuki Corporation, Hyundai Motors, Yamaha Motors, Bajaj Auto, and Hero Motorcycles, among others. Several players in the market are introducing various business strategies to gain a competitive advantage, which are expected to enhance the target market during the forecast period.
- October 2023: Ashok Leyland announced the completion of its maiden locally assembled Phoneix trucks at Rana Motors assembling plant in Accra. The company aims to take advantage of the government’s Automotive Manufacturing Development policy to ramp up its assembling activity in Ghana.
- April 2023: Ghana’s Jospong Group, a major conglomerate in the country, announced its collaboration with the US-based ZeroNox, which specializes in the electrification of commercial vehicles, to launch a massive electrification project involving 1,000 rubbish trucks. Under the signed joint venture agreement, 1,000 rubbish trucks from Zoomlion, a subsidiary of Jospong, would be retrofitted with ZeroNox’s latest EV platform and LFP batteries.
Ghana Automobile Market Leaders
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Toyota Motor Corporation
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Bajaj Auto Ltd
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Honda Motor Corporation
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Yamaha Corporation
*Disclaimer: Major Players sorted in no particular order
Ghana Automobile Market News
- March 2024: Honda Manufacturing Ghana Limited (HMG), a subsidiary of Honda, initiated automobile production operations at its facility in Tema, Ghana. This marks Honda's second automobile manufacturing plant in Africa, following the establishment of a plant in Nigeria. The Tema plant commenced production of the HR-V, a compact SUV, in December 2023, with an initial annual production capacity of 500 units.
- March 2023: TVS Motor Company announced the launch of new three-wheeler products in Ghana, the TVS King Series. The launch aims to expand the company’s reach and develop new avenues for growth in the African market.
- March 2023: Toyota Manufacturing Ghana Co. Limited, the vehicle assembly company of Toyota Tsusho Corporation, announced the commission of its first locally assembled Suzuki Swift in Ghana. The company also stated that they would continue the semi-knocked down (SKD) production of the Suzuki compact car in the country.
- March 2023: TVS Motor Co. is expanding and growing its export footprint and is eyeing faster growth in Africa. The company launched seven products in Ghana, comprising five motorcycles and two variants of the TVS King autorickshaw. These seven TVS products specifically are the 110 cc Neo NX, three variants of the HLX series (HLX 125, HLX 150, and HLX 150X), which recently surpassed global sales of three million units, the Apache 180, and the TVS King three-wheeler.
Ghana Automotive Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Expanding the Presence of Automobile Assembly Plants in Ghana to Drive Demand in Target Market
4.2 Market Restraints
4.2.1 High Import Tariffs and Taxes on Vehicles May Stymie Industry Expansion
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value, Volume)
5.1 By Vehicle Type
5.1.1 Passenger Cars
5.1.2 Commercial Vehicles
5.1.3 Two-wheelers
5.1.4 Three-wheelers
5.2 By Propulsion
5.2.1 Internal Combustion Engine
5.2.2 Electric Vehicles
5.3 By Type
5.3.1 New Vehicles
5.3.2 Used Vehicles
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Kantaka Group
6.2.2 Tata Motors Ltd
6.2.3 Bajaj Motors
6.2.4 Honda Motor Company Ltd
6.2.5 Ford Motor Company
6.2.6 Mercedes-Benz Group AG
6.2.7 BMW AG
6.2.8 Hyundai Motor Company
6.2.9 Nissan Motor Co. Ltd
6.2.10 Volkswagen Group
6.2.11 Volvo Group
6.2.12 Toyota Motor Corporation
6.2.13 Mitsubishi Motor Corporation
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Ghana Automobile Industry Segmentation
The automotive industry involves designing, producing, wholesaling, retailing, and maintaining motor vehicles. The automotive industry in Ghana is largely made up of retailers of imported used vehicles and a few distributors who deal in the retailing of new vehicles.
The Ghanaian automobile market is segmented by vehicle type, propulsion, and type. Based on vehicle type, the market is segmented into passenger cars, commercial vehicles, two-wheelers, and three-wheelers. Based on propulsion, the market is segmented into internal combustion engines and electric vehicles. Based on the type, the market is segmented into new vehicles and used vehicles. The report offers the market size in value terms in USD for all the above-mentioned segments.
| By Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles | |
| Two-wheelers | |
| Three-wheelers |
| By Propulsion | |
| Internal Combustion Engine | |
| Electric Vehicles |
| By Type | |
| New Vehicles | |
| Used Vehicles |
Ghana Automotive Market Research FAQs
How big is the Ghana Automobile Market?
The Ghana Automobile Market size is expected to reach USD 1.93 billion in 2024 and grow at a CAGR of 1.55% to reach USD 2.08 billion by 2029.
What is the current Ghana Automobile Market size?
In 2024, the Ghana Automobile Market size is expected to reach USD 1.93 billion.
Who are the key players in Ghana Automobile Market?
Toyota Motor Corporation, Bajaj Auto Ltd, Honda Motor Corporation and Yamaha Corporation are the major companies operating in the Ghana Automobile Market.
What years does this Ghana Automobile Market cover, and what was the market size in 2023?
In 2023, the Ghana Automobile Market size was estimated at USD 1.90 billion. The report covers the Ghana Automobile Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Ghana Automobile Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Ghana Automotive Industry Report
Statistics for the 2024 Ghana Automotive market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Ghana Automotive analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Ghana Automotive Market Report Snapshots
