Car automakers based in Brazil supported the government’s decision that reduced the deadline to establish the imported electric or hybrid vehicle import rate by 35% and that set quota for companies to bring these types of tax exemption cars.
According to the government, the Demands of automakers based in Brazil and the importers in the phase of facilities of factories in the country, such as Chinese Byd.
The decision impacts the dispute for the Brazilian market that placed, on the one hand, the Chinese manufacturer BYD, leadership in electric cars, against Toyota, General Motors, Volkswagen and Stellantis, who had been asking the government to limit imports from electric or hybrid vehicles.
The National Association of Motor Vehicle Manufacturers (Anfavea) asked to reduce from July 2028 to July 2026 the maximum transition period to raise the import rates of these vehicles disassembled to 35%.
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In a decision made on Wednesday (30), the government responded, in part, the claim of the association, anticipating the elevation of the rate for January 2027, but not on July 2026, as the automakers wanted. Still, the president of Anfavea, Igor Calvet, thanked the ministries involved in the decision.
“[A mudança] It is the most acceptable without endangering the current and future investments of the national automotive chain. We hope this discussion will definitely be closed without any possibility of renewal, ”Calvet said in a statement.
THE Brazil agency He sought BYD for positioning and awaits return.
GECEX
THE Executive Management Committee (GECEX) of the Chamber of Foreign Trade (Camex), that brings together representatives of 10 ministries, It also decided to apply additional zero rate import quotas for disassembled (CKD) and semi -demon (SKD) vehicles, for a period of 6 months, in the maximum amount of US $ 463 million.
“With the anticipation of the schedule, GECEX seeks to adapt the tariff policy to expected investments for the coming years in the automotive sector of the country, bringing new technologies to the consumer and increasingly densifying the national production chain.” In a statement, the committee reported.
The import quota without fees pays off, in part, the fact that the government does not fulfill the BYD request to reduce the rate while finishing build the factory in Camaçari (BA). The Chinese company also claims that it was unable to pay, for disassembled cars, the same fare paid to imported ready cars.
Market dispute
This week, the automakers Toyota, General Motors, Volkswagen and Stellantis released a letter sent in June to President Luiz Inacio Lula da Silva. In the document, they claimed that the BYD election would endanger the investments and jobs of the sector, representing unfair competition.
Already BYD, in a statement, reported that the automakers mentioned were blackmailing the government to keep the market closed to new competitors.
“Now there is a Chinese company that accelerates factory, low price and puts an electric car in the middle class garage, and dinosaurs freak out,” said Byd.
In the statement issued after Gecex-Camex’s decision, the president of Anfavea argued that the new actors entering the Brazilian car market should join “fair and competitively”.
“Certainly, everyone will be very well received, including the entity [Anfavea]which brings together all national manufacturers. We are sure that this movement we made, along with parliamentarians, governors of the states, with workers, with the union that represents the national auto parts industry, with the EEA [Associação Brasileira de Engenharia Automotiva]served to demonstrate the strength of the national automotive industry, ”he added.
Transition
By 2023, imported electric and hybrid cars still paid any import tariff, while ready -made combustion cars paid 35%tariff.
In a strategy of forcing the installation of factories in Brazil, the government decided to create a transition rule to raise the rate, year by year, until reaching 35% in 2028. According to the vice president and Minister of Development, Industry and Commerce, Geraldo Alckimin, the result of the policy was positive.
“You have numerous companies opening factories in Brazil. You have Chinese GWM, in Indianópolis (SP), which bought the factory that was closed in Mercedes-Benz. It had BYD in Camaçari (BA), which purchased the factory that was from Ford,” he said in a collective earlier this week.
