The Vehicles and Assets Dealers Union of Ghana (VADUG) has raised an alarm over the growing presence of Chinese automobile brands in Ghana, warning that the trend is putting huge pressure on local vehicle dealers and threatening thousands of jobs in the sector.
Speaking at a press conference in Accra on Thursday, June 11, 2026, VADUG President Bernard Ntrakwa said Chinese manufacturers and assemblers are creating an uneven competitive environment by increasingly importing, assembling, and retailing vehicles directly in Ghana.
The union’s core grievance is a significant tax imbalance. While local dealers pay between 35 and 50 percent in taxes and duties on used vehicles imported from the United States, Europe, and Japan, Chinese assemblers importing semi-knocked-down (SKD) and completely knocked-down (CKD) kits benefit from duty exemptions under Ghana’s automotive policy. VADUG says this disparity has allowed Chinese brands to gain a stronger foothold in the market, shrinking local dealers’ market share and leaving more vehicles unsold for longer.
“We do not oppose foreign investment. But this current trend is unsustainable,” the union said.
VADUG also questioned the direct involvement of Chinese companies in the retail segment of the market, noting that major manufacturers from the United States, Japan, Germany, and South Korea have traditionally worked through local dealership networks rather than selling directly to consumers.
The union further warned that without stricter regulation, Ghana risks becoming a dumping ground for older internal combustion engine vehicles as China fast-tracks its shift toward electric vehicles.
“Without strict regulation from GSA, DVLA, and GIPC, Ghana risks becoming a dumping ground for substandard cars. That is a safety and environmental time bomb,” it stated.
VADUG is calling on the government to review existing tax and duty structures to level the playing field for local dealers, strengthen vehicle quality and safety standards, and provide financing and capacity-building support for local dealers through institutions such as the Ghana EXIM Bank.
