INDUSTRY DISCRIPTIONa

8/7/2019 INDUSTRY DISCRIPTIONa

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INDUSTRY DISCRIPTION

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 theoldest 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 seven 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

manufacturers brand of vehicles.

Major players of the brand new group include:

y ABR Ghana Limited. Dealers in brand new ABR saloon and off road vehicles as well as

earth moving machines.

y Mechanical Lloyd Company Limited

Holding franchise for BMW, Massey Ferguson, DAF Buses

y Stallion Motors

Dealers in Honda, AUDI, Skoda vehicles.

y Silver Star 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.

y CFAO Ghana Motor

Distributes Renault and Mitsubishi brand of vehicles.

y Japan Motors and Auto Parts

Formally family owned Kalmoni and Sons are known to be the sole distributors of

brand new Nissan vehicles.

y Mantrac Ghana Limited



Authorized dealer for Caterpillar products. They provide caterpillar tractors for wide

and varied applications. They are also distributors of Chevrolet, Suzuki and Isuzu

vehicles.

y PHC Motors

Dealers in TATA, Daimler Chrysler, Land Rover and Range Rover vehicles in Ghana.y RANA Motors

Dealers in KIA vehicles

y Auto Plaza

Hyundai brands of vehicles

INDUSTRY GROWTH

Ghanas automobile industry has been growing at a fast pace since the mid 1990s. 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 railtransportation 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 Trotro 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 persons financial muscle is which car he/she drives. So considering the

above, it is very safe to include that the automobile industry will continue to grow and

is very attractive.

CURRENT TRENDS

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.

MACRO ENVIRONMENTAL INDICATORS

In January 2011, government increased the prize of petroleum products by

30% and this has a potential of discouraging the purchase of vehicles.

With the introduction Single Spine 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.

Society 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.

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, fuelefficient and low Co2 emission through out the life cycle of vehicles and

moderate noise levels during usage.

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.

MICRO ENVIROMENTAL TRENDS

y The threat posed by new entrants from particularly Chinese importers notably Jangling

Motors. Their target audiences are mainly price sensitive consumers

y 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.

COMPANY REVIEW

ABR Ghana Limited was incorporated in Ghana in January 1990 by investment of Marubeni

Corporation, Japan and Marubeni Auto Europe S.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 Japan (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.



BRANCHES:

ABR Ghana currently has show rooms in Accra - Head office, Kumasi and Takoradi - a liaison

office.

INDUSTRY DISCRIPTIONa

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