Business

‘Automobile market to pick up in second quarter’

The Ghanaian automobile market is expected to pick up gradually in the second quarter after marginal turbulence in the first quarter, Mr Kojo Annobil, the Director of Sales and Marketing, Mechanical Lloyd Ghana Limited, has said.

He said market watchers expected trading in the second quarter to increase marginally due mainly to international market index and anticipated stability of the local currency against other currencies, as well as other economic indicators.

Mr Annobil, in an interview with the Ghana News Agency, on the performance of the automobile industry in the first quarter of 2019, said the industry pivoted on three main clients; government, corporate and retail.

He said the government mainly patronised pick-ups, sports utility vehicles (SUV) and other four-wheel vehicles and, occasionally, the saloon cars, whilst the corporate clients, mainly from the business environment, also bought saloon cars, SUVs, luxury and pick-ups.   

The retail market depended on those who walked in, he said.

Mr Annobil explained that the depreciation of the cedi in the first quarter created a huge unpredictable market environment adding, “Even though the dollar price of a car remained static for a long time, the volatility of the cedi made it difficult for people, especially workers.

“At the beginning of the year, with a loan of about GH¢50,000.00 one could buy a car valued at GH¢10,000.00 dollars and still have some money to do registration and insurance, but in March even though the car was still valued at $10,000 one would need over GH¢50,000.00 to buy it and still look for additional funds for registration and insurance,” he said.

Mr Annobil said the vehicles had been pegged at the dollar rate for some time now and that the depreciation of the cedi had pushed most clients to patronise second-hand cars.

“We expect government’s interventions and policies towards stabilisation of the cedi to yield positive results; economic market depends on predictability, so if you cannot predict the value of your local currency against other currencies, then you are in trouble,” he said. 

The company, which is a fully Ghanaian owned, currently holds franchises for BMW and Ford vehicles as well as Massey Ferguson agricultural machinery. It has held these franchises for over 10 years.

Mr Annobil said in spite of the unpredictability of the automobile market as a result of the weak cedi, Mechanical Lloyd had established itself as the leader in the Ghanaian automotive industry.

“We provide good quality products and service, competitively priced, and delivered in the most courteous and professional manner and secures for its shareholders the optimum return on their invested capital,” he said.

Mr Annobil said the company would continue to maintain an environment where its human resources were provided with the opportunity to develop their maximum potentials. GNA

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