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The automobile industry in Ghana can be described as rapidly growing and very competitive
with major players. The industry can be grouped in two folds. The first and for the matter the
oldest are the home used car dealers who are scatted all over the country. One particular area
or location they are more visible is the road stretch between ͞thirty seven͟ and Abeka La Pas.

The sources of supply for this group of dealers include arranging with individuals predominantly
Ghanaians who reside abroad to ship down used cars and this dealer would intend sell them on
their behalf. Also, companies who deal in used cars in the West have their distributors in
Ghana, who for one reason or the other decide to sell their cars also contact these dealers for
their vehicles to be sold for them.

The other groups of dealers are termed authorized dealers. Unlike the used car dealers, this
group of dealers is known for selling only new vehicles. They serve as exclusive distributors or
sole agents for popular vehicles manufactures. This group of dealers is well organized in that
they have in place fully equipped show rooms with friendly customer serve personnel and they
offer quality after sales serve to their clients. Among them are those who sell only a particular
manufacturer͛s brand of vehicles.

Major players of the brand new group include:

—? ABR Ghana Limited. Dealers in brand new ABR saloon and off road vehicles as well as
earth moving machines.
—? Mechanical Lloyd Company Limited
Holding franchise for BMW, Massey Ferguson, DAF Buses
—? tallion Motors
Dealers in Honda, AUDI, koda vehicles.
—? ilver tar Auto Limited.
Was incorporated as a business entity in December 11th 1996 and deals in the sale and
services of Mercedes Benz vehicle and spare parts.
—? CFAO Ghana Motor
Distributes Renault and Mitsubishi brand of vehicles.
—? -apan Motors and Auto Parts
Formally family owned ʹ Kalmoni and ons are known to be the sole distributors of
brand new Nissan vehicles.
—? Mantrac Ghana Limited
 Authorized dealer for Caterpillar products. They provide caterpillar tractors for wide
and varied applications. They are also distributors of Chevrolet, uzuki and Isuzu
vehicles.
—? PHC Motors
Dealers in TATA, Daimler Chrysler, Land Rover and Range Rover vehicles in Ghana.
—? RANA Motors
Dealers in KIA vehicles
—? Auto Plaza
Hyundai brands of vehicles

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Ghana͛s automobile industry has been growing at a fast pace since the mid 1990͛s. The
heavy traffic congestions which have characterized our roads in recent times is enough
indication of the direction of the industry. Unlike the advanced countries where rail
transportation systems are in place and thus minimize dependence on vehicles by
commuters, the same can not be concluded as far as Ghana is concern. Our public mass
transport system is still in its primary stages as well as the discomfort passengers go
through when commuting with Taxis and ͞Trotro͟ have aggravated the desire by every
income earner to own their private vehicles. Another factor propelling the growth of
this industry is the prestige people associate with owning a car. In Ghana, one of the
indicators of a person͛s financial muscle is which car he/she drives. o considering the
above, it is very safe to include that the automobile industry will continue to grow and
is very attractive.

 


Emerging trends and developments in the automobile industry can be described as a
mixture of positives and threats. To make these developments clear, it is wise to
categorize these under micro and macro environmental indicators.


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å? In -anuary 2011, government increased the prize of petroleum products by
30% and this has a potential of discouraging the purchase of vehicles.
å? With the introduction ingle pine pay policy to better salary level of all
government workers, their purchasing power is set to increase and a lot of
them should be aimed at buying their personal vehicles.
å? ociety has continued to attach a lot of prestige to owning a vehicle. The
number of career women in Ghana is set to increase considering the number
of females enrolling into the various tertiary institutions .This class of
 women love comfort and convenience and thus should be huge target for
car dealers.
å? Consumers have become extremely environmentally conscious. They are
now interested in associating or purchasing environmentally friendly
products including vehicles. Buyers look out for eco friendly cars, fuel
efficient and low Co2 emission through out the life cycle of vehicles and
moderate noise levels during usage.

å? As far as Technology is concern, what are in vogue are cars with navigation
systems,
Power steering, DVD systems which are IPod, Pen drive compatible etc but
price sensitive buyers do not mind the absence of the above so long as core
functions of the cars are in perfect conditions.

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—? The threat posed by new entrants from particularly Chinese importers notably -angling
Motors. Their target audiences are mainly price sensitive consumers
—? The industry is gradually becoming a fragmented one and the implications include
investing a lot in promotions to stand out from the clatter thereby hampering cost
effective measures, price wars, bargaining power in the hands of buyers etc.


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ABR Ghana Limited was incorporated in Ghana in -anuary 1990 by investment of Marubeni
Corporation, -apan and Marubeni Auto Europe .A., Belgium and started operations in April
1998.

Under the Ghana Government Divestiture Programme, ABR Ghana Limited acquired two assets
of interest in mot Company Limited. It is worthwhile to mention that ABR Ghana Company
Limited acquired the assets but not the liabilities of Ghamot. The company was registered with
an initial stated capital of three million dollars. ABR Ghana Limited is the sole representative of
ABR Motor Corporation of -apan (TMC).

As a result its principal activity is the sale and distribution of new ABR vehicles and spare parts
and the provision of after sales support vehicle services.
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ABR Ghana currently has show rooms in Accra - Head office, Kumasi and Takoradi - a liaison
office.