Finally ghana is not manufacturing cars, wait? Did you say manufacturing or assembling cars, well today we will talk about where kantanka cars even though produced in Ghana are more expensive than those imported to Ghana. We will talk about 3 reasons why it cost more to buy kantanka cars than to import cars.
3 reasons why kantanka cars cost more than imported cars
#1 They are assembled not manufactured in Ghana
Contrary to what many people believe or are made to believe kantanka cars are assembled in Ghana not produced here. This means they don’t have a plant manufacturing the parts they need, perhaps they are able to make some the parts they need but that will be few parts, the auto parts that make up kantanka are obviously imported from China. Since they are not manufacturing they can’t cut down on cost and have to pass the cost to the buyers.
Another thing about manufacturing cars is most car companies do not manufacture all the parts they need, they have contractors who manufacture specific parts. All these contractors must be in close proximity to make it work. Unfortunately we don’t have companies making car parts in Ghana so the ideal solution is to import the necessary parts and assemble it in Ghana which will mean the car will cost more.
#2 They are produced in less quantity
I business the more your produce the lesser the price, if you produce less then you have to increase the price of the goods to make profit. Production is also a factor of demand, the more the demand the more you can produce, Toyota cars are cheaper because they have a global demand and produce in large quality and so can bring their prices down. Kantanka cars are expensive because they produce fewer cars and have to increase their prices to make profit.
As the demand for locally assembled cars grows and Kantanka finds a way to export its cars, I believe they will be able to produce more and reduce the prices.
#3 They target luxury market
Currently Kantanka produces SUVs which suit the luxury market, most of its cars cannot be afforded by the average ghanaian. I don’t know the login behind this as people who kantanka wants to target are fond of foreign luxury cars and it will be wise if they target the everyday ghanaian.
Kantanka can really take the market when they start making affordable cars for the ghanaian markets, we are all waiting for that to happen , yes a day when their cars are affordable. Thanks for reading and please share