Eric Boateng, the President of the Automobile Dealers Union in Ghana, has painted a grim picture of the current state of the automobile market in the country.
Mr. Boateng highlighted the extreme instability in the market, revealing that dealerships are grappling with the possibility of going over six months without a single sale.
He expressed how the once-predictable nature of the market has evaporated, making it nearly impossible for dealers to forecast sales. He reminisced about a time when dealers could confidently anticipate selling at least three cars a day. However, in the current climate, attempting to predict market trends only leads to disappointment.
“We used to predict the market and believe we could sell at least 3 cars a day. Now you can barely predict the market and the flow of it. If you predict you end your day miserable and so disappointed,” Mr. Boateng lamented.
One of the significant challenges cited by Boateng is the uncertainty surrounding consumer preferences. In the past, certain imported cars were guaranteed to leave the dealership within days, but now dealers struggle to identify the preferred models.
“Previously when we import the cars there are some we normally know they would not stay in the garage for two days. But this time around you barely know the kind of cars moving and the preferred ones,” Boateng explained.
He further revealed the harsh reality that some dealerships, which had been in business for decades, are now on the verge of collapse. He disclosed that between 2000 and 2003, many dealers diversified into other businesses, recognizing the volatility of the car market. However, those who remained solely dedicated to the automotive sector are now witnessing the collapse of their ventures.
“Now we could go six months without sales. Some of us have been in the business for long and along the line between 2000 and 2003 we thought it wise to have other business to run aside the car dealership business. But for the rest who were solely into the car business have all collapsed their businesses,” Boateng emphasized.