Honda starts producing cars in Ghana, second plant in Africa

Honda starts producing cars in Ghana, second plant in Africa

Honda Manufacturing Ghana Limited (HMG), a subsidiary of Honda Motor Co., Ltd., has inaugurated its new plant in Tema, Ghana, where it will produce HR-V SUVs for the local market. The plant, which started production in December 2023, is the second Honda automobile plant in Africa, after a plant in Nigeria.

The inauguration ceremony, which took place on Thursday, March 7, 2024, was attended by representatives from the Ghanaian government, the media, and Honda executives and associates, including Katsuhisa Okuda, Honda Operating Executive and Head of the Regional Unit (Europe, Africa and the Middle East).

The plant, which has an initial annual production capacity of 500 units, will produce HR-V, a small-sized Honda SUV, using the complete knock-down (CKD) method, where parts and components are imported and assembled locally. The plant, which employs about 40 people, will also provide after-sales service and spare parts for the customers.

The plant is part of Honda’s strategy to expand its business in West Africa

The plant is part of Honda’s strategy to expand its business in West Africa, a region that the Japanese automaker considers as a growth market. Honda has been conducting automobile business in four countries in West Africa: Nigeria, Ghana, Benin, and Cote d’Ivoire.

In Nigeria, Honda established a local automobile business subsidiary in 2013 and began automobile production in 2015. In Ghana, where Honda has been selling automobiles through distributors since 1997, a local office was established in 2019, and has been conducting business that is rooted in the local community.

Now, by leveraging the experience and know-how amassed through automobile production in Nigeria, Honda has begun producing automobiles locally for customers in Ghana. Based on its longstanding commitment to “build products close to the customer,” Honda will continue offering products that will satisfy customers all around the world.

The plant aims to contribute to the development of the Ghanaian economy and society

The plant aims to contribute to the development of the Ghanaian economy and society, by creating jobs, generating revenue, and enhancing mobility. The plant will also adhere to the highest standards of quality, safety, and environmental protection, and will comply with the local laws and regulations.

The plant will also support the Ghanaian government’s vision of becoming an automotive hub in West Africa, and will cooperate with the government and the stakeholders to promote the growth and the sustainability of the automotive industry in Ghana.

Katsuhisa Okuda, Operating Executive, Head of Regional Unit (Europe, Africa and the Middle East), said that he was very pleased that the second Honda automobile plant in Africa had begun production, and that he hoped that the plant would bring joy and happiness to the Ghanaian people.

“We are very pleased that the second Honda automobile plant in Africa has begun production and we were able to come together to hold this ceremony to mark the start of production. Although production volume is still small, Honda has established a local subsidiary and begun production on our own. In Ghana, where the population is increasing, we will provide as many customers as possible with the joy, fun and freedom of mobility and the joy of making changes that make their lives more enjoyable. In this way, Honda will grow its business in West Africa,” Okuda said.