Jeffrey Peprah, Chief Executive Officer (CEO), Volkswagen Ghana, says the automotive industry can be the backbone of Ghana’s economy due to its significant contributions to employment, manufacturing, innovation and export revenues.

He said the automotive industry created jobs not only within the industry but also in related sectors such as supply chain, services, and technology.

The CEO was speaking during a media launch of Volkswagen Ghana’s new product in Accra, the Volkswagen Virtus, which is also part of the polo family.

The Volkswagen Virtus is the latest Volkswagen model to be locally assembled at the Tema facility among others such as Teramont, Tiguan Allspace and T-Cross.

The Volkswagen Virtus’ interior is designed with attention to detail and offers the latest technology, comfort, and practicality, and includes a multifunction steering wheel, multi-function dashboard display, wireless App Connect and wireless charging.

“If you go to Japan, Germany and even South Africa, the automotive industry is the backbone of their economy, so it is something that we have to embrace as a country,” he said.

Mr Peprah said Volkswagen since 2020, had introduced over six models into the market, adding that they were poised to serve the Ghanaian market with genuine and affordable cars.

He said currently as part of the government’s policy around locally assembled products in the automotive industry, there would soon be the vehicle financing initiative which would be launched to help secure competitive loans to finance vehicles locally assembled.

“However, we do not wait for the government but we also have plans to introduce financial services here that will support in that regard,” the CEO added.

Mr Peprah said there were close engagements with the government to have policies on the ban of old used cars into the market, adding that for every government, policies were key to drive development.

Madam Martina Biene, Managing Director, Volkswagen Group Africa, said Ghana was an important country for their African dream to be the leading provider of sustainable mobility on the continent.

She said Volkswagen was among the first carmakers to invest in Ghana after the Ghana Automotive Development Policy (GADP) was introduced.

“I firmly believe in the future of Ghana as the automotive hub in West Africa,” the Managing Director added.

She said the promising progress of the automotive industry in Ghana was the envy of other African countries, especially in West Africa.

Madam Biene said, however, Ghana was not fully harnessing the opportunities presented by the GADP to grow into a thriving new car market.

“In 2023, 6000 new cars were sold in Ghana which in my view is not a true reflection of the potential of this country.”

“I believe that the 2023 volume could be quadrupled in the short term if the two outstanding elements of the GADP are implemented,” she added.

The Managing Director appealed to the government to expedite the implementation of the outstanding elements of the policy to unlock the local market.