The General Manager of Kantanka Automobile, Francis Kojo Kujoji, has confirmed that there is no import duty required to be paid on any vehicle purchased from Kantanka Automobile Company; and as part of an incentive packages for all their clients, the company assists customers to register their vehicles with the Driver and Vehicle Licencing Authority (DVLA) of Ghana free without charge.
Speaking on Eye on Port, the General Manager of Kantanka Automobile revealed that the company now has a range of vehicle at its disposal which are selling at various showrooms across the country – including SUVs and pick-ups in 2 categories, the luxury and the ordinary, as well as a mini-SUV called the K71. Additionally, the general Manager revealed that some 150 sedan vehicles and a mini-sedan model of car will soon be outdoored onto the Ghanaian market.
Francis Kojo Kujoji explained that from the initial stages, Kantanka out of a deliberate marketing strategy decided to produce for the high-end market and institutions such as the Military and top government officials in order to get high-profile endorsement for their vehicles.
“You know Ghanaians; if you start with something small, they will say you can’t go higher. And also, we decided to go for a kind of endorsement approach in marketing.”
He said they believe that this made it less difficult when they started scaling down the grade of cars for the mass market, which allowed people to recognise Kantanka and associate them with high-profile personalities; and from there, decided to scale-down their model of cars.
The General Manager of Kantanka Automobile hinted that although Kantanka cars have compatible model parts in the market, they have their own spare-parts which they have decided to franchise to other dealers to make them accessible everywhere since they had in the past monopolised sales of their spare-parts. He said this is an effort to grow their supply chain at every corner of the country and ensure a total capture of the Ghanaian market, even as the country joins the rest of the continent to commence implementing the continental free trade area soon.
“The parts of our vehicles are compatible with some of the models we already have in the markets; but then, we still have some parts available for our own brand of vehicles. We had initially monopolised the parts, but now what’s going to happen is that we will give franchises to parts dealers in Abosey-Okai and, Suame Magazine etc.”
Mr. Francis Kujoji revealed that it has been their hope to reduce the cost of their cars, but the vehicle components imported from Asia are quite expensive although the recent Ghana Automotive Manufacturing Development Programme Policy has ensured a significant reduction in import duty to about 25%. “We want to do cars and come out with models that will cost like 10,000, 12,000, and 9,000 Ghana cedis – but we cannot because the components are expensive. If you put even the batteries and tyres together, it’s over 7,000 cedis,” he bemoaned.
The General Manager of Kantanka Automobile, Francis Kujoji, disclosed that the company is looking to import about 300 forty-foot containers of vehicle components every year, which will be equivalent to 600 TEUs of imports annually – especially as they are looking to grow production significantly following the effectiveness of the new Ghana Automotive Manufacturing Development Programme Policy. “We are estimating over 300 forty-foot containers per year,” the General Manager hinted.
On the company’s preparedness to sell beyond the Ghanaian Market, he revealed that they have already exported to Norway and Liberia and are getting remarkable demands from the Sub-regional and regional Markets. “Our first export was to Liberia and to the then President of Liberia, Sirleaf Johnson” Mr. Kujoji revealed.
Kantanka to unveil new semi-sedan and electric-Aboboyaa vehicles this month
The General Manager of Kantanka Automobile, Francis Kojo Kujoji, has revealed that the company in the next few days of the month August 2020 will unveil its all-new mini-sedan 1.5 cc vehicles called ‘Kantanka Amoanemaa mi’, and an electric-powered tricycle popularly called ‘aboboyaa’ onto the Ghanaian market.
“Let me take this opportunity to commend the management of Kantanka for the good job they have done over the past years and for bringing this to fruition. They have done a lot of good for themselves by moving beyond trade shows and exhibitions,” the General Manager revealed
He further asserted that Kantanka is ready to take over the Ghanaian market and is currently producing at a capacity of eight (8) cars per day, but can increase their optimum capacity to twelve (12) cars per day in the near future.
Speaking on Eye on Port, the General Manager of Kantanka Automobile said there had been several efforts since the company’s conceptualisation stage, including writing petitions to win the support of governments in promoting their indigenous automobile company.
He praised the recently outdoored Ghana Automotive Manufacturing Development Programme Policy and revealed that Kantanka has been part of it from the beginning through a series of engagements, and is therefore optimistic that it will help the company live its dream of producing in large quantities vehicles which the Ghanaian market will be happy with.
“Once this policy is out, then it means whatever dream we had ten (10) years ago should be a reality; so I can confidently say that we are at the dream realisation stage of the company, and this year we are going to step out fully,” he assured.
He added that due to the recent government directive for state institutions to purchase locally assembled vehicles, they are currently concentrating on building more pick-ups and preparing to unveil about 150 sedan vehicles called Kantanka Amoanemaa with a market price of about 75,000 Ghana cedis for such brand-new sedans compared to about 120,000 Ghana cedis for cars of similar specs from different brands, in addition to making available good payment plans.
“Looking at the directives from government, pick-ups dominate government purchase of vehicles; so the concentration is now on pick-ups and the mini-cars,” Mr. Kujoji explained.
The General Manager also hinted that they do not intend to venture into the production of motorbikes anytime soon, but in the interim will concentrate on tricycles popularly called ‘aboboyaa’ and have also have built disability-friendly vehicles for the market.
“Looking at the accident rates of motorbikes, we don’t want Kantanka to be associated with a lot of accidents; alternatively, we will rather be doing the tricycles. We have actually developed a system whereby a physically challenged person who is fit can drive the car with only their hands.”
He also asserted that the company currently has 350 employees, and does not consider the influx of other assemblers as a threat to their business.
AGI commends Kantanka for growth
…praise gov’t for new automotive policy
The Chief Executive Officer of the Association of Ghana Industries (AGI), Seth Twum-Akwaboah, has commended Kantanka for their substantial growth in the automobile industry of Ghana, and encouraged them to increase capacity to capture the entire Ghanaian market and even beyond.
He praised Kantanka’s initial market strategy and also urged them to adopt a good financing model for their products by partnering with the banks. “The current Minister of Finance and the Deputy Speaker of Parliament use their vehicles as well, so once they got to that stage and started developing the mass market, that was the right thing; but of course they have to grow it further, and I think one area they need to critically look at is how they can partner financial institutions which will give loan facilities for workers, companies, institutions and individuals who can tap into some kind of resource and buy their vehicles.”
He also urged them to be able to produce at a minimal cost but without compromising quality to ensure sustainability of their products in the market.
“They need to continuously work on efforts to reduce cost as much as possible. If you have a high volume at reduced cost, then the cost per unit also reduces; then you become competitive in the market. But never compromise on quality just because you want to reduce cost; if you do so, people may use it today, but you cannot retain the customers.”
He further advised Kantanka to ensure efficient sustenance of their supply chain by making their parts accessible everywhere, and also train household mechanics to make repair of their vehicles easier following breakdowns.
“Well-stocked parts in different parts of the country in different market centres is very key; and, again, they need to train local mechanics who can fix those vehicles – because for every vehicle, today you may buy it new but tomorrow it’s old; so, definitely, you will need these mechanics to have a supply or value chain system that works.”
The AGI president applauded government for the new Ghana Automotive Manufacturing Development Programme Policy to promote local assemblers and manufacturers of cars.
“It’s basically a general policy to encourage made-in Ghana products, and we have always said that government procurement is key if you want to support local industries; and therefore government coming out with the policy for government institutions to give priority to the purchase of locally assembled vehicles, I think it’s a very good policy and it should be encouraged.”
The AGI boss was also quick to advise that government should move beyond procuring the vehicles to ensuring prompt payment, in order to keep the assemblers in business.
“We should make deliberate efforts to ensure that if we are buying from the local assembly plants, then we’ll pay promptly.”
He also encouraged government to put in place measures to reduce cost of production, including reduction in import taxes; and called on government agencies and embassies to help promote export of the Kantanka cars.
“So we have to continuously advocate, and government must continuously listen to us, to help reduce cost of production.”
The AGI CEO revealed that Kantanka has an edge in the sub-regional market and regional markets, but said it is advisable that they build a buoyant local market first.
“It looks like the local market is catching on, so once you have good grasp of the local market you can then launch into the other markets.”
The AGI applauded Kantanka for not seeing other assemblers as competitors, and urged Ghanaians to develop confidence in their products as well as all made in Ghana products.