Accra: Chief Executive Officer of Zonda Tec Ghana, Yang Yang, has highlighted China's successful automobile industry strategy, attributing it to government policies implemented more than three decades ago. Speaking on the Citi Breakfast Show, Yang emphasized the significance of the Chinese government's long-term plan to establish a robust domestic automobile industry.
According to Ghana Web, Yang explained that the Chinese government invited global car manufacturers, including Toyota and Volkswagen, to set up factories in China. The government offered incentives such as free land, tax holidays, and access to the local market. A key condition was that these manufacturers send their engineers to train Chinese engineers, with a 15-year tax-free period in place. This approach enabled local engineers to gain essential knowledge and skills, contributing to the development of local technologies over time.
Yang further noted that the perception of Chinese cars among Ghanaians is changing, as many initially believed China's automotive success happened overnight. She clarified that it was the result of a 30-year strategy, stressing the gradual nature of China's achievements in the industry.
She also mentioned that approximately a decade ago, the Chinese government introduced policies encouraging local companies to develop their own technologies, largely in response to the country's dependence on imported oil. Companies like BYD, GWM, and Geely were urged to innovate and create their own technologies. Sustained government support allowed these companies to become globally competitive, with GWM investing heavily in research and innovation to develop hybrid technologies and produce affordable vehicles.
Yang pointed out that GWM has dominated the Chinese market for 17 years, offering vehicles priced nearly half that of competitors like Toyota or VW, making them both affordable and of quality. These same policies have paved the way for companies like Zonda Tec to bring quality and affordable Chinese vehicles to markets such as Ghana.