The Vehicles and Assets Dealers Union of Ghana (VADUG) has called on the government to implement urgent policy measures to protect local automobile dealers from what it describes as unfair competition arising from the growing presence of Chinese automobile brands in the Ghanaian market.
Addressing a press conference in Accra on June 11, 2026, VADUG expressed concern over the rapid expansion of Chinese automobile companies such as Zonda, GWM, Geely and Jetour, which are increasingly importing, assembling and retailing vehicles directly in Ghana.
The union said while it welcomes foreign investment, the current arrangement places traditional Ghanaian car dealers at a significant disadvantage.
According to VADUG, local dealers who import used vehicles from the United States, Europe and Japan are required to pay between 35 and 50 percent in taxes and duties, while some local assemblers benefit from duty exemptions on Semi-Knocked Down (SKD) and Completely Knocked Down (CKD) vehicle kits.
The union argued that the disparity is shrinking the market share of local dealers, increasing the time vehicles remain unsold and threatening the livelihoods of thousands of Ghanaians who depend on the automobile trade.
“Over the last few years, Ghana has seen a rapid influx of Chinese automobile brands. Companies like Zonda, GWM, Geely, and Jetour are now importing, assembling, and even retailing directly here. We do not oppose foreign investment. But this current trend is unsustainable.
“Our members who import used cars from the US, Europe, and Japan pay 35-50% in taxes and duties. Meanwhile, local Chinese assemblers enjoy duty exemptions on SKD/CKD kits. That is unfair competition. It is shrinking market share,” the Group noted.
VADUG also raised concerns about the quality of some vehicles entering the Ghanaian market, warning that the country’s automotive sector could become a destination for older internal combustion engine vehicles as China accelerates its transition towards electric vehicles.
The union urged regulatory bodies, including the Ghana Standards Authority (GSA), the Driver and Vehicle Licensing Authority (DVLA) and the Ghana Investment Promotion Centre (GIPC), to strengthen oversight and enforce strict quality, safety and environmental standards.
The association questioned why some Chinese automobile companies are allowed to engage in both distribution and retail activities, arguing that established American, Japanese, Korean and German automobile manufacturers operating in Ghana have traditionally relied on local dealers and distributors rather than competing directly at the retail level.
“American, Korean, Japanese, and German brands have been in Ghana for decades. They manufacture cars. But they have never set up retail garages to compete directly with local dealers. Why then are Chinese firms being allowed to do both distribution and retailing? Why are they taking over everything they can think of?
“We are not against progress. We are against unfair rules,” VADUG said in a statement.
To address the situation, VADUG called on the government to reform import taxes and duties, enforce investment regulations governing foreign participation in retail automobile sales, and include the union in all consultations relating to the Ghana Automotive Development Policy.
The group also advocated support measures for local dealers, including access to financing through the Ghana Export-Import Bank (GEXIM Bank), training programmes and mentorship initiatives to enhance competitiveness.
Beyond concerns over foreign competition, VADUG criticized the Ghana Revenue Authority’s AI Publican System, introduced to reduce revenue leakages and under-invoicing at the ports.
The union alleged that the system assigns inflated values to imported vehicles, resulting in significantly higher import duties and increased costs for dealers.
VADUG argued that the valuation mechanism is inconsistent with international trade practices and called on government and the GRA to engage stakeholders to review the system and find a mutually acceptable solution.
The association further proposed the introduction of a flat-rate import duty regime for vehicles and spare parts, subject to periodic review, to improve predictability, reduce disputes over valuation and curb corruption at the ports.
On the issue of DV trade plates, VADUG called for a forensic audit into the allocation of DV registration plates by the DVLA.
The union alleged that while approximately 90,000 DV plates have been produced, recognized automobile dealer groups have received only a fraction of the total allocation and demanded transparency regarding the distribution of the remaining plates.
“About 90,000 DV plates have been produced — including 9999 plates with no prefix, and prefixes A,B,C,D,E,F,G,H and J. VADUG, representing the majority of automobile dealers, received only 1,500 copies. Ten other recognized unions got between 300-1,000 copies each. The rest went to politicians and individuals.
“Total allocation to dealers and recognized groups is not more than 17,000. So we ask: where did the other 73,000 plates go? We call on DVLA for a forensic audit of this year’s edition for full transparency,” they added.
VADUG also appealed to the Ministry of Trade, Agribusiness and Industry to expedite plans for the establishment of a proposed 200-acre “Car Village Market” near Winneba Junction, which it says would provide warehousing facilities, customs services and other essential infrastructure for vehicle dealers.
The union concluded by reaffirming its commitment to working with government and other stakeholders to build a fair, safe and inclusive automotive industry that protects local businesses while welcoming responsible foreign investment.
According to VADUG, with the right policies and stakeholder engagement, Ghanaian automobile dealers can thrive alongside foreign investors while contributing to job creation, government revenue and national economic growth.
