An Overview of the Problems Facing the Automobile Industry in Ghana

Abstract

Abstract:The automobile industry is faced with a lot of challenges. These challenges affect the both the environment and economic distribution of resources in Ghana. This research employs a purposive sampling technique in collecting views of automobile operators in Ghana to establish a general overview of problems facing the sector. In this study, it is estimated that 75% of respondent's vehicle is powered by Diesel and only 5% of respondent's vehicle is moved by gas. Making fossil fuel the most predominantly use means for vehicle operation in Ghana. The research identifies that the use of fuel and maintenance are challenging problems in vehicle operation. It is found that as the cost of fuel increases, the expenditure also increases with a marginal fare increase. It is established that, about 90% of the respondents asserted that it was very expensive hence they have being looking for other means such as the conversion of petrol/diesel to gas system. However the gas also poses another challenge with constant shortage. It was also estimated that the cost of maintenance is at a modal cost of GHC250 per annum with modal number of maintenance in a year being 12.