Mr. Jeffrey Oppong Peprah, Chief Executive Officer of Volkswagen (VW) Ghana, has called for a financing framework to boost patronage of locally assembled vehicles.
He said the financing framework must recognise the current challenge of market dynamics where cash purchases dominate and hinder widespread access to new vehicles.
The CEO said this at the introduction of the new Volkswagen Touareg in Accra.
The Volkswagen Touareg in Ghana boasts a powerful 3.0 TSI V6 engine delivering 250 kW, paired with an 8-speed automatic gearbox and 4motion all-wheel drive for superior performance.
It features striking IQ, Light HD matrix headlights and LED taillights with dynamic indicators, alongside an illuminated Volkswagen logo specially designed for terrains like Ghana.
Mr. Peprah said there was the critical need to shift away from the prevailing cash-based model.
“We see that all vehicles being purchased in Ghana or in the sub-region are mostly cash paid. People save for a longer time and then pay for the vehicle in the longer term,” he said.
The CEO said this would drive volume, and he think this would be something good for all Ghanaians who would like to drive a vehicle.
He said this trend, worsened by high interest rates on traditional loans currently exceeding 24 per cent, significantly restricted the purchasing power of the average Ghanaian, driving them towards buying imported used vehicles.
Mr. Peprah revealed that presently, the Automobile Association of Ghana was actively engaging the government regarding a government-incentivized loan system for vehicle purchasing.
He noted that the objective of such engagement was to secure lower interest rates, making new, locally assembled vehicles a viable option for a broader segment of the population.
“This is where we see that it is essential for the Ghanaian government and the private sector, including banks and insurance companies, to come together and create something much more affordable for our Ghanaian people who want to buy vehicles,” he added.
The CEO said that this would stimulate the entire automotive value chain, creating jobs and boosting economic growth.
He said the facility would facilitate buying, or the buying power, as people would have a chance to pay in the longer term.
“This will drive volume, and I think this will be something good for all Ghanaians who would like to drive a vehicle,” he said.
The CEO said such initiatives were a crucial step towards reducing the reliance on salvage vehicle imports, which posed safety and environmental concerns.
He said by making locally assembled vehicles more accessible, the market for potentially hazardous imports would shrink.
Mr Peprah expressed optimism that a collaborative effort between the government, financial institutions, and the private sector would lead to the development of a sustainable and effective vehicle financing framework, ultimately benefiting the Ghanaian economy and its citizens.
