Tema Car Dealers Decry High Import Duties, Unfair Competition, and Exchange Rate Pressures

The General Secretary of the Tema Car Dealers Association, Odeneho Kofi Asamoah, has voiced deep concern over the growing challenges facing the used car dealership industry in Ghana, citing rising import duties, volatile exchange rates, and policy imbalances as major threats to their survival.

Speaking to the media, Mr. Asamoah highlighted the steep rise in vehicle prices, which he attributed to excessive import duties, hidden port charges, and the weakening Ghana cedi. “The cost of vehicles has skyrocketed to the point where we’re unable to sell to our clients. A Toyota Vitz now goes for GH¢110,000 and above depending on the year model, all because of the duties we pay,” he said.

He further noted that more popular models such as the Toyota Corolla, Honda, Hyundai, Kia, and Mercedes-Benz sedans are now priced between GH¢160,000 and GH¢350,000, making them unaffordable for many average Ghanaians. “These prices are not driven by profit margins but by the high cost of clearing vehicles at the port,” he stressed.

Call for Policy Reform and Equal Treatment

Mr. Asamoah also criticized what he described as unfair competition from brand new car dealerships, who benefit from favorable government policies such as bonded warehousing—a system that allows them to defer the payment of import duties until a vehicle is sold.

“In contrast, we, the used car dealers, must pay full duties upfront before our cars are cleared from the port. This creates an uneven playing field,” he said. He called on the government to implement a similar system for used car dealers, proposing the creation of a ‘Ghana Car Village’, where vehicles could be stored tax-free until purchased, similar to the practice at the Lomé Port in Togo.

Mr. Asamoah referenced a previous government initiative, where land was secured at Winneba Junction in the Central Region for such a purpose, and urged the current administration to revive and complete the project to help sustain the used car industry.

Stabilize the Dollar and Provide Financial Relief

To promote stability and better business planning, the Association is also calling on the government to peg the dollar at a fixed exchange rate for defined periods. “This will help us plan our business and bring some predictability to our pricing,” he said.

Additionally, Mr. Asamoah appealed for soft loans and financial support to help car dealers recover from the economic impact of inflation and high exchange rates. “Our working capital has been wiped out. Without support, many of us will be forced out of business,” he lamented.

Conclusion

The Tema Car Dealers Association is urging swift government intervention to address the growing disparities and financial burdens in the automotive import sector. As economic pressures mount, the call for reforms such as the Ghana Car Village and a fairer import system grows louder, with hopes that policy changes will level the playing field and revitalize the used car industry.