Brand New Vehicle Sales Up 31% (read more)

Last year, sales of brand new vehicles went up by 31.3 per cent to 8,201 units, according to data from the Ghana Automobile Dealers Association (GADA). Although the figure is an improvement on last year’s numbers, which were 6,248 units, it is still below the 13,123 units sold in 2012. After peaking in 2012, brand new vehicle sales by the GADA, a group of about 30 automobile companies in the country, have been dropping, mainly as a result of dampened consumer sentiments, declining economic fortunes and the growing influence of ‘grey importers’ in the vehicle retail business. Last year’s increment is, however, heartwarming for the dealers, given that it came on the back of dwindling consumer sentiments and dampened economic growth, which were inspired mostly by the energy crisis and deteriorating currency depreciation within the period. The Marketing Manager of Japan Motors, Mrs Hilda Peasah, told the GRAPHIC BUSINESS that the 2015 figures showed that sales by members had entered a recovery mode. Japan Motors, which retails Nissan vehicles and related accessories, is a member of the association, with sales averaging 500 units per annum. “Generally, the economy has not been too good over the last few years and you know government is the biggest spender. So, once government contracts are not forthcoming, then sales will be down,” she said on April 15. “For now, I think we are in recovery mode and we hope it continues. The other thing too is that the ‘grey importers’ are becoming stronger and because of that they take a part of our market share,” she added. The GADA categorises ‘grey importers’ as companies that do not belong to the association but retail brand new vehicles in the country. In recent times, many companies have set up nationwide to retail used vehicles to the general public. This category of car retailers mostly target low-income earners whose earnings cannot afford them brand new vehicles from GADA and other companies. Although their presence poses a challenge to GADA members, Mrs Peasah said they were not seen as competitors but partners in the wider sense. “The used car market will always be there because it is not everybody who can afford new vehicles. For the impact, I do not think there is an issue because their existence really does not have a direct impact on our sales,” she said. Given that these dealers do not mostly have genuine spare parts to accompany their vehicles, Japan Motors’ Marketing Manager said most buyers normally tended to rely on GADA members for spare parts whenever the need arose. She, however, added that their inability to provide warranty for vehicles sold had impacted negatively on the brands of the cars they retailed. “If someone buys a Toyota vehicle from a used car dealer and it is not backed by warranty, that person will always say it’s Toyota and that has an impact on the brand,” she explained. The data further showed that Nissan and Toyota vehicles topped the list, with 2,097 and 1,964 units respectively. It was followed by KIA and Mitsubishi, with 909 and 808 units. In terms of sales per month, last year’s data showed that January recorded the highest monthly sales of 811 units followed by March with 787. The least monthly sales were recorded in September, when units sold dropped from to 562.

Source: Daily Graphic