Ghana Automobile Market Size (2024 - 2029)

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 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.