Car Dealers Warn Chinese Imports Are Squeezing Local Businesses

The Vehicles and Assets Dealers Union of Ghana says the growing presence of Chinese car brands is hurting local dealers and putting thousands of jobs at risk.

Speaking on Rainbow Radio 87.5FM’s _Frontline_, VADUG President Bernard Ntrakwa said Chinese manufacturers are now importing, assembling, and selling cars directly in Ghana. He called it an unfair playing field.

Ntrakwa explained that local dealers import used cars from the US, Europe, and Japan and pay 35% to 50% in taxes and duties. Meanwhile, Chinese assemblers bringing in semi-knocked-down and completely knocked-down kits enjoy duty exemptions under Ghana’s automotive policy.

That tax gap, he said, has helped Chinese brands expand quickly while local dealers struggle with shrinking market share and longer periods with unsold stock.

“We do not oppose foreign investment. But this current trend is unsustainable,” Ntrakwa said.

VADUG also questioned why Chinese firms are handling both distribution and retail in Ghana. The union noted that major US, Japanese, German, and South Korean automakers usually work through local dealership networks instead of selling directly.

The group warned of another risk: as China shifts to electric vehicles, Ghana could become a dumping ground for older petrol and diesel cars. Without strict checks from the GSA, DVLA, and GIPC, Ntrakwa said, the country faces a “safety and environmental time bomb” from substandard vehicles.