The Automobile Dealers Union of Ghana (ADUG) says meaningful reductions in vehicle prices are unlikely to take effect until 2026, despite recent improvements in Ghana’s economic environment.
In a press statement dated July 31, the Union welcomed the Bank of Ghana’s (BoG) decision to lower the Monetary Policy Rate (MPR) from 28% to 25%, as well as the strengthening of the Ghana cedi against the US dollar, calling both developments positive signals for the automotive sector.
“This strategic decision will ease the cost of borrowing and revitalise business confidence across the country,” the statement read.
ADUG further described the BoG’s rate cut as a “signal of hope for the business community, particularly in the automotive retail and distribution value chain,” adding that it could boost job creation, economic growth, and mobility access nationwide.
However, speaking in an interview with Citi News, ADUG President Kwaku Boateng urged consumers to manage expectations regarding immediate price drops.
“About 90% of the vehicles on the market were imported when the exchange rate was much higher. Dealers are still selling off those stocks and cannot reduce prices yet,” he explained.
He added that although current economic indicators are promising, any tangible decrease in vehicle prices will only become feasible when importers begin acquiring vehicles at lower exchange rates and reduced financing costs, likely by 2026.
Mr. Boateng appealed to Ghanaians for patience and called on the government to maintain the current macroeconomic stability, which he said is essential to future price relief for consumers.
The Union reiterated its commitment to engaging policymakers and stakeholders in creating a more affordable and sustainable automotive market in the long term.
