Ghana Autos Report Q2 2012
Business Monitor International, February 2012, Pages: 35
Business Monitor International's Ghana Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Ghana's automotive industry.
Despite the country's small size, Ghana's autos market has grown rapidly in recent years thanks to economic growth and a developing middle class.
BMI believes the Ghanaian economy will enjoy stellar economic growth over the medium term, propelled by the nascent oil and gas sector. Ghana's abundant natural resources, fast growth trajectory and relative political stability augur well for strong foreign investment inflows.
Car sales increased in 2006 when real GDP growth hit a high of 6.4% and, according to the African Development Bank, car ownership grew 81% over the next five years. BMI expect a similar link between economic and autos growth in 2012, when their Africa team's forecast for GDP growth of 7.9% should contribute to a 28% rise in vehicle sales, to 10,688 units.
Although their estimates have been revised down, good annual growth in GDP per capita over the next five years (from US$1,562 in 2011 to US$3,595 by the end of their forecast period in 2016), should benefit vehicle sales in the country. BMI think these levels of wealth will be enough to overcome the lingering habit of choosing second-hand imports of high-end brands over new alternatives from lesser-known brands. However, there are risks of macroeconomic instability stemming from burgeoning oil revenues and the December 2012 election.
A boost to the car industry came in Q411 with the Accra International Motor Fair on October 21-22 2011. Carmakers used the event to display new models and offer special discounts for the duration of the show only. New launches came in all price brackets, with model debuts planned by Skoda Auto, Honda Motor, Ford Motor and BMW.
However, the obstacle to companies selling new cars and to domestic production is still the country's large used car market. Regardless of the age of the car, consumers in Ghana, and indeed many African countries, often prefer a second-hand car from a high-end European brand to a new car from a lesserknown brand and this could be a particular threat at the entry-level end of the market.
As such, carmakers in Ghana are investing in after-sales services such as spare parts and servicing to increase revenue and market share. Both Japanese firm Toyota Motor and Turkish commercial vehicle producer BMC have announced new after-sales services as a way of adding value to their products. BMI believes that the influx of Chinese brands, with their ability to compete on price, could prompt a trend for such services from the more established brands.
Executive Summary
SWOT Analysis
Ghana Autos Industry SWOT
Ghana Political SWOTs
Ghana Economic SWOTs
Ghana Business Environment SWOTs
Global Overview
Eurozone And EMs Pose Risks To 2012 Growth Outlook; US And Japan On The Rise
Table: Passenger Car Sales (Units), Jan-December 2011
Industry Risk/Reward Ratings
Table: Sub-Saharan Africa Autos Risk/Reward Ratings
Regional Overview
BMI Highlights Its Favourite Opportunities In Sub-Saharan Africa
Macroeconomic Forecast Scenario
Table: Ghana - Economic Activity
Industry Forecast Scenario
Table: Ghana Automotives Historical Data & Forecasts
Competitive Landscape
Company Monitor
JLR Investment Targets Increased Buying Power
Company Profiles
Nissan Ghana (Auto Parts Ltd)
Toyota Ghana
BMI Methodology
How We Generate Our Industry Forecasts
Automobile Industry
Sources
- Nissan Ghana (Auto Parts Ltd)
- Toyota Ghana
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