By King Amoah
The local automobile industry is abuzz following a serious allegations leveled by a prominent dealer, Nana Yaw Nsiah Chief Executive Officer (CEO) of Nsiah Automobile Company Ltd in Accra.
Mr. Nsiah has drawn the government’s attention to what he describes as a deliberate strategy by Chinese businessmen to flood the Ghanaian market with combustible used cars, a move he links directly to China’s ambitious agenda to transition fully to electric vehicles (EVs) by 2030.
Speaking to the Correspondent on the issue Mr. Nsiah who also doubles as 2nd Deputy President of the Vehicle And Assets Dealers Union of Ghana (VADUG) indicated that for an extended period Chinese business entities have been importing substantial quantities of used and internal combustion engine (ICE) vehicles into Ghana.
He asserted that this influx strategically undermines the local automobile dealers who struggle to compete amidst what appears to be a systemic neglect from the regulatory authorities.
Furthermore,l Mr. Nsiah highlighted a concerning trend where these foreign principals reportedly operate through local front men and circumvent Ghanaian trade laws and regulations..
While Mr. Nsiah explicitly stated that he does not oppose foreign investment, he views these current activities as a clear tactic to collapse local automobile businesses.
The agenda of the Chinese he said can also be seen as evidence for the China government to dump its used cars on the African continent, and for that matter Ghanaians, as a result of its readiness to use electronic vehicles in their country by the year 2030.
This suggests a calculated move to offload legacy inventory as China dramatically shifts its domestic automotive landscape towards sustainable electric mobility.
Acknowledging China’s sovereign right to adopt policies that can advance its economy, Mr. Nsiah emphasized the need for a level playing field.
He advocates for Chinese exporters of used cars to either grant Ghanaian automobile dealers the freedom to operate without undue competition or to engage in collaborative partnerships that would ensure mutual benefit and foster a thriving local industry.
Crucially, Mr. Nsiah turned his gaze towards the Ghanaian government by posing a critical questions regarding the nature of its engagement with Beijing.
What agreement has the country entered with the China government whilst it continues to dump its used cars in the country, he questioned and stressed that the lack of transparency.
He further urged the authorities to articulate the tangible impact and profit that Ghana stands to gain from such aggressive dumping particularly in light of the global shift towards electric vehicle systems.
Nsiah related that Ghana stands the risk to suffer when these Chinese used cars bring problems to the country in future when electronics cars become a common use at the global level.
Ghana would then be compelled to seek international loans with high interest rates to buy the electronic cars with China having free space to operate their electronics cars without difficulty.
Mr Nsiah pleads for a better deal deal that can see the progress of the country if the authorities continue to allow China to dump their used cars in Ghana.
Mr Nsiah also raised a poignant hypothetical: Should the whole world refuse entry of combustion or used cars in their economies, where would China direct their used cars to.
It is against this backdrop that Mr. Nsiah is vehemently calling upon the Ghana government to intervene. He demands immediate action to ensure that transparency, fair play, and adherence to legal frameworks within the automobile industry are ultimately safeguarding the interests and economic well being of Ghanaian citizens and local businesses.
