The Vehicles and Assets Dealers Union of Ghana (VADUG) is calling for urgent reforms to Ghana’s automotive taxation and regulatory framework, warning that the rapid growth of Chinese automobile brands in the country is placing significant strain on local dealers and threatening jobs across the sector.
At a press conference in Accra on Thursday, June 11, 2026, VADUG President Bernard Ntrakwa said the expansion of Chinese vehicle manufacturers and assemblers in Ghana has created what the union describes as an uneven competitive environment for local operators.
According to the union, while local dealers mainly import used vehicles from markets such as the United States, Europe, and Japan and pay import duties and taxes ranging between 35 and 50 percent, Chinese assemblers importing semi-knocked-down (SKD) and completely knocked-down (CKD) kits benefit from duty exemptions under Ghana’s automotive development policy.
The union argues that this disparity has allowed foreign brands to strengthen their market position, gradually reducing the share of local dealers and leaving many imported vehicles unsold for longer periods.
VADUG stressed that it is not opposed to foreign investment but believes the current structure is not sustainable for local businesses operating in the sector.
The group also raised concerns about the growing involvement of some foreign automobile companies in both distribution and direct retail within Ghana, a practice it says differs from traditional global models where manufacturers typically rely on independent local dealerships.
Beyond competition issues, the union warned that Ghana could face a long-term risk of becoming a destination for older internal combustion engine vehicles, especially as China continues to accelerate its shift towards electric mobility and reduces its reliance on petrol and diesel vehicles.
It cautioned that weak regulatory enforcement could expose the country to unsafe or low-quality imports, calling for stronger oversight from relevant state agencies to prevent Ghana from becoming a dumping ground for substandard vehicles.
VADUG is urging government to review existing tax and duty structures to ensure a fairer competitive environment. It is also calling for tighter enforcement of investment and retail regulations within the automotive sector, along with stronger vehicle quality, safety, and warranty standards.
Additionally, the union wants government to support local dealers through financing and capacity-building initiatives, including increased access to support from state financial institutions such as the Ghana Export-Import Bank.
The group also raised concerns about customs valuation processes at the ports, particularly the use of the AI-based valuation system by the Ghana Revenue Authority. It claims the system often assigns higher-than-expected values to imported vehicles, leading to increased duty payments and higher operating costs for dealers.
VADUG is therefore calling for dialogue between government, the Ghana Revenue Authority, and industry stakeholders to review the system and consider introducing a more predictable and transparent duty regime, including proposals for a flat-rate structure on vehicles and spare parts.
