Mr. Jeffrey Oppong Peprah, Chief Executive Officer of Volkswagen Ghana, has said that Ghana’s local vehicle assembly industry holds the key to developing a sustainable, homegrown used car market that will benefit consumers and strengthen the economy.
Mr. Oppong Peprah described local assembly as a strategic foundation for creating a reliable source of quality used cars domestically, reducing dependence on imports.
“Local vehicle assembly is not only about producing brand-new cars. It’s about laying the foundation for a future used car market that is traceable, affordable, and trusted,” he said.
Volkswagen Ghana began operations in 2020 and has since assembled more than 2,600 vehicles at its Tema plant, which has an annual production capacity of 5,000 units.
Despite this achievement, the CEO noted that low local demand, largely due to limited access to auto financing, continues to constrain production.
Mr. Oppong Peprah admitted that the shift from imported used cars to locally assembled vehicles would not be easy, given that imported used cars currently account for more than 70 percent of annual vehicle registrations in Ghana.
Between 2015 and 2018, Ghana imported an average of 100,000 used vehicles each year, making it one of the largest used car markets in West Africa.
“The transition will be difficult, but it is necessary if Ghana wants to build an integrated and future-ready automotive industry,” he said.
He explained that developing a domestic used car ecosystem would provide multiple long-term benefits, including affordability for middle-income households and the creation of a formal resale market for locally assembled vehicles.
Mr. Oppong Peprah also acknowledged that while the transition could disrupt the current used car import trade, the local automotive value chain would ultimately generate more skilled employment through technology transfer, component manufacturing, and industrial partnerships.
“This is not a zero-sum situation. It is an all-on-board movement that requires collaboration between government, industry players, and the public to ensure a smooth transition,” he emphasized.
The Volkswagen Ghana CEO reaffirmed the company’s commitment to its long-term vision for Ghana, noting that the country remains a strategic pillar in Volkswagen’s broader plan to establish a West African automotive hub aligned with the objectives of the African Continental Free Trade Area (AfCFTA).
Mr. Oppong Peprah stressed that policy consistency, affordable financing schemes, and stronger public awareness about the benefits of locally assembled vehicles are vital to ensuring that Ghana’s auto industry continues to grow and eventually powers a self-sustaining used car market.
