TABLE OF CONTENTS
CHAPTER 1 – INTRODUCTION………………………………………………………………………………………………………………… 1
CHAPTER 2: REVIEW OF LITERATURE…………………………………………………………………………………………………….. 6
- INTRODUCTION………………………………………………………………………………………………………………………………. 6
CHAPTER 3: METHODOLOGY……………………………………………………………………………………………………………….. 21
CHAPTER 4: RESULTS…………………………………………………………………………………………………………………………… 26
- INTRODUCTION…………………………………………………………………………………………………………………………….. 26
CHAPTER 5: CONCLUSIONS & RECOMMENDATIONS………………………………………………………………………….. 41
ACKNOWLEDGEMENT
Firstly, I would like to thank God for taking me through this project successfully. It has not been an easy journey. I would like to sincerely thank God so much for my supervisor, Dr. Stephen Armah for his immense help and support whenever I needed him most. His feedback was always very useful and was essential to the completion of this project. My deepest appreciation also goes to my second reader, Capt. Joseph Williams for taking time to read through this project. I also appreciate both my mother and grandmother for their endless love and support throughout this study.
ABSTRACT
This thesis examines the automotive industry in Ghana with a focus on Kantanka Automobiles; the first indigenous automobile manufacturer in Ghana. Kantanka automobile Company Limited specializes in the manufacturing of both on-road and off-road vehicles that are designed to accommodate the Ghanaian and African terrain. This research paper sought to identify the factors affecting the firm’s performance with a focus on marketing and to determine the desirability of Kantanka vehicles to the Ghanaian consumer.
This is a descriptive research which involves both primary and secondary data. The study was carried out primarily through questionnaires which to be disseminated to the employees of Kantanka Automobiles as well as selected persons in the labor force of the economy. An interview with the marketing manager of Kantanka Automobiles was also conducted to obtain relevant information for this study.
The key findings of this study show that there is relatively low brand awareness of the indigenous vehicle manufacturer. It also shows that Kantanka Automobile Company Limited suffers from lack of financial support which is slowly crippling the firm belonging to the infant industry in the economy.
Analyzing these findings, the study recommends that there is the need for relevant stakeholder engagement, including the government to help facilitate the provision of domestic automobile parts as well as manufacturing centres with modern tools and machinery to effectively aid the development of Kantanka Automobile Company Limited and the automobile industry. It also recommends that It would be of great benefit if the government of Ghana provides an enabling environment in the form of tax exemptions, and subsidies to reduce the burden on the indigenous vehicle manufacturer.
CHAPTER 1 – INTRODUCTION
BACKGROUND
The invention of automobiles also called cars have improved the quality of life by transporting human beings and goods from one place to another safely and faster. This has shown to be more efficient than traveling on foot and riding on animals such as horses and camels for longer distances.
Over the years, the automobile industry has evolved in both positive and negative ways. One of the noticeable ways in which the automobile industry has improved is in the creation of employment for many people all over the world. The automobile industry has expanded into various sectors that require almost every sort of expertise. There is the manufacturing department which requires people with knowledge in engineering, computer science, management information systems and business administration which would help the firm in its financing decisions such as profitability and determining the optimum level of production. The car assembling industry has performed a major role in the economic development of many countries. The car manufacturing industry is an essential factor for developmental growth and industrialization (Lee, 2011). The automobile manufacturing industry serves as a major source of revenue for many European automobile companies. This has been a major source of contribution to the economic growth and development of these manufacturing countries and has greatly increased productivity.
In Ghana, the automotive industry is affected by numerous factors such as culture, disposable income, unemployment rates, among others. For a very long time, Ghanaians have been very dependent on their colonial masters; the British. This has given many Ghanaians the perception that European goods are of more
quality than locally produced goods. There is no exception when it comes to the Ghanaian automotive industry as most vehicles in the country have been imported to be used here. Most of these are usually used and salvaged vehicles. It is no surprise though, as the Europeans have existed in the automotive industry for years, hence they would generally produce vehicles of better quality.
DESCRIPTION OF PROBLEM STATEMENT
Most vehicles in Ghana are usually imported either brand new, used or salvage and then sold or purchased for commercial and personal use. The dependence on imported cars was in part a reflection of the lack of technical know-how and organization needed to manufacture cars.
However, in terms of importation costs, the charges in the form of taxes imposed on consumers who purchase these vehicles alone is quite frightening. The cost of purchase of brand-new cars is so high for Ghanaians that, the dominant choice for cars are the cars declared to have zero blue book value in countries like the United States of America which are then shipped to Ghana, restored and sold. The shipping costs are also astronomical. Despite this barrier, this is the most popular method used when an individual would wish to purchase a vehicle.
In the year 2015 Kantanka automobiles launched its company as Kantanka automobile company Ghana Limited. Kantanka automobile Company prides itself as the first indigenous automobile manufacturing company in Ghana.
Kantanka Automobiles launched its automobiles to the general public in the
year 2015 but per numerous Ghanaian publications, the company’s vehicles are rarely visibly recorded. This led to a dilemma as to whether this is as a result of the quality of the goods they produce or the business strategies they employ.
Some key points such as the Ghana terrain, lack of trust in the company, no help from government, pricey vehicles among others were key points mentioned whenever Kantanka vehicles is spoken about. A vehicle comprises of over 35,000 parts hence the industry that is associated with the manufacturing of each part plays a very important role in developing an economy and inducing employment (Lee, 2011).
