The Automobile Dealers Union of Ghana (ADUG) has advised Ghanaians to manage expectations regarding vehicle price reductions, indicating that any substantial drop is unlikely until 2026, despite encouraging signs in the country’s economic environment.
In a press statement issued on July 31, the union welcomed recent economic developments—including the Bank of Ghana’s reduction of the Monetary Policy Rate (MPR) from 28% to 25% and the strengthening of the Ghana cedi against the US dollar—describing them as critical steps that could eventually influence retail prices in the automotive sector.
“The monetary policy rate reduction is a strategic decision aimed at easing the cost of borrowing and revitalising business confidence across the country,” the union said in its statement.
ADUG also described the BoG’s move as a “signal of hope” for businesses, particularly in the automotive retail and distribution value chain, and noted that it could act as a catalyst for job creation, mobility enhancement, and inclusive economic growth.
However, ADUG President Kwaku Boateng, in an interview with Citi News, noted that vehicle prices are unlikely to fall significantly in the short term due to existing stock levels.
“I’m urging Ghanaians to be patient. About 90% of the vehicles we imported were brought in before the dollar appreciated,” Boateng said.
He explained that many dealers are currently holding inventory acquired when the cedi-to-dollar exchange rate was higher, and it would not be financially viable to lower prices drastically until those stocks are depleted or replaced with new imports at more favourable rates.
Mr Boateng appealed to the government to sustain current economic gains and strengthen policies that support currency stability, affordable financing, and a business-friendly environment. He stressed that sustained improvements in these areas are essential for dealers to adjust prices downward and pass savings on to consumers.
The union remains hopeful that if the economic stability continues into 2025, the automotive market could see major pricing improvements by 2026, marking a relief for consumers after several years of high vehicle costs fuelled by inflation, currency depreciation, and high import duties.
Until then, ADUG has encouraged consumers and businesses to remain calm and trust in the long-term benefits of Ghana’s improving economic indicators.
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