President of policy think tank, IMANI Africa has advised domestic automobile company, Kantanka to build smaller cars for the Ghanaian market to stay in business.
According to him, the automobile company can build low-end cars like those used by Uber drivers with low fuel consumption.
“Kantanka may be useful in looking at providing cars for Uber-like services, small cars that people can buy… from a purely marketing standpoint, Kantanka will be better off not going into the high-end type of cars because already the competition there is steep,” he added on Citi FM/Citi TV’s news analysis programme, The Big Issue on Saturday.
Some Ghanaians have predicted tough competition for the Kantanka automobile company following government’s decision to allow German automobile Company Volkswagen to set up a car assembly plant in Ghana.
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At a joint press briefing held as part of the visit of the German Chancellor, Angela Merkel to Ghana last week, President Nana Akufo-Addo said there was an agreement between Volkswagen, the Government and a local company to establish the assembly plant in the country.
“There are so many areas that our bilateral relationship has offered us, but the key part of it for me is the emphasis on investment and trade cooperation,” President Akufo-Addo said.
Franklin Cudjoe said Kantanka must strategize in order not to be kicked out of business by VW or companies importing slightly used cars into the country at reduced rates.
“If Kantanka is selling a car at almost 80,000 or 90,000 cedis and a VW comes here with its super-efficient assembly and undercuts you, that’s not government’s fault. I can understand that the economic challenges within the country can make it difficult for Kantanka to survive, but Kantanka will be better off not going into the high-end type of cars,” he added.
But the Chief Executive Officer (CEO) of the Kantanka Automobile Company, Kwadwo Safo Jnr. says his company is not afraid of competition from any international automobile firm seeking to set up in Ghana.
He, however, advised the government to focus on making the right policies that will protect a local automobile industry like theirs and help them grow.
“Mr. President. [The] Only thing we need is good policies to protect the automobile industry and help grow our local industries …To anyone that thinks @KantankaAuto is scared of competition. We are not. I simply want better policies for our auto industry,” he stated on Twitter.
About Kantanka automobile
The Kantanka Automobile Manufacturing Company was set up by Apostle Kwadwo Safo Kantanka, the Leader of the Kristo Asafo Mission.
Kantanka In 2012, launched a sports utility vehicle, the Kantanka Nsoromma, which is powered by a shirt. In the same year, he introduced another 4X4 vehicle, the “Kantanka Daasebre,” which is powered and steer-controlled by a wristwatch.
In June 2007, he released an advanced model of the Kantanka Onantefo, the Kantanka Onantefo II, which, like all his cars, was driven through most parts of the country for testing.
That same year, he unveiled a solar-powered non-engine saloon car, the Kantanka Odeneho.
In 2013, he unveiled the Kantanka Otumfuo, a four-wheel drive that is ignited with a walking stick; the Kantanka Odeneho II, an upgraded version of the Kantanka Odeneho I, the KTK 02, a defensive helicopter, the Kantanka passenger airliner and Kantanka Bazookas.
Then on November 26, 2015, the company’s manufacturing plant at Gomoa Mpota in the Central Region was inaugurated for the first batch of 35 vehicles to be made available on the Ghanaian market.
The safety of the Kantanka vehicles has been approved by Ghana’s Drivers Vehicle Licensing Authority (DVLA).
The company began commercial sale of the Kantanka cars in November 2015.
The Ghana Police Service and other government agencies are already using some of the Kantanka vehicles.