Ghana’s vehicle dealers have raised alarm over what they describe as “unfair competition” from a growing influx of Chinese automobile brands, warning that current policies threaten local businesses and jobs.

The Vehicles and Assets Dealers Union of Ghana (VADUG), speaking at a press briefing in Accra on Thursday, said thousands of local dealers are being squeezed out of the market as Chinese firms expand operations across importation, assembly and retail.

“We do not oppose foreign investment, but this current trend is unsustainable,” the union said.

VADUG argued that its members, who import used vehicles from the United States, Europe and Japan, pay between 35% and 50% in taxes and duties, while Chinese assemblers benefit from duty exemptions on semi-knocked down (SKD) and completely knocked down (CKD) kits.

“That is unfair competition… it is threatening the livelihoods of thousands of Ghanaian families,” the union said.

The group also warned that Ghana risks becoming a dumping ground for internal combustion engine vehicles as China moves towards phasing out petrol and diesel cars by 2030.

“Without strict regulation, Ghana risks becoming a dumping ground for substandard cars. That is a safety and environmental time bomb,” VADUG said.

It questioned why Chinese firms are allowed to engage in both distribution and retailing, unlike traditional manufacturers from the United States, Japan, Korea and Germany, which typically operate through local dealerships.

“Why are they taking over everything?” the statement asked.

VADUG is calling on the government to reform import duties to create a level playing field, enforce investment laws to restrict foreign firms to distribution roles, and include the union in consultations on the Ghana Automotive Development Policy.

The union also urged stricter enforcement of quality, safety and warranty standards, and called for financial and technical support for local dealers through the Ghana EXIM Bank.

The dealers also criticised the Ghana Revenue Authority’s AI-powered customs valuation system, known as the “AI Publican System,” which sets minimum import values.

They said the system arbitrarily inflates vehicle values, causing duties to “double or triple” and violating global trade rules that require duties to be based on actual invoices.

“We believe government introduced it to shore up revenue shortfalls, but it has worsened our businesses,” the union said, calling for stakeholder engagement to review the system.

VADUG further raised concerns over the allocation of DV (dealer) plates, alleging widespread misuse and political interference.

Out of about 90,000 DV plates produced, the union said its members received only 1,500, while recognised dealer groups collectively received fewer than 17,000.

“So where did the other 73,000 plates go?” it asked, calling on the Driver and Vehicle Licensing Authority (DVLA) to conduct a forensic audit.

The union also urged the government to revive plans for a 200-acre “Car Village Market” near Winneba Junction, intended to provide warehousing and streamline customs processes for vehicle imports.

It said despite earlier assurances from the Trade Ministry, progress on the project has stalled.

VADUG concluded by calling for urgent government intervention to protect local businesses while allowing fair competition.

“With the right policies, Ghanaian dealers can coexist with foreign brands… we stand ready for dialogue,” the statement said.