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Brazil will end its tax-free import policy for electric vehicles from January next year

souhangeang https://www.sofreight.com/school/souhang_information_article?id=66311 2023-11-17 18:07:09

Brazil will end its tax-free import policy for electric vehicles from January next year

Recently, the Foreign Trade Commission of the Brazilian Ministry of Economy (Camex) made a decision that starting from January 2024, the country will resume levying taxes on new energy vehicles, including pure electric new energy vehicles, plug-in new energy vehicles and gasoline-electric hybrid new energy vehicles. Import tariffs on automobiles, etc., and gradually increase the import tariff rates on new energy vehicles.

The relevant tax rate will rise to 35% by July 2026, and the tax percentage during the transition period will vary depending on the level of electrification and the production process of each model, as well as national output.

According to data from the National Association of Motor Vehicle Manufacturers (Anfavea), Brazilian electric vehicle registrations increased by 20.2% from January to October 2023 compared with 2022.

Between January and October 2023, the number of newly licensed electric vehicles in Brazil reached 10,100, about 1,700 more than last year. In October, Brazil registered 2,400 electric vehicles, an increase of 33.3% month-on-month; compared with the same period last year, it increased 300%.

Currently, Chinese automakers are increasingly entrenched in the Brazilian electric vehicle market, with their share of the Brazilian electric and hybrid vehicle market jumping from 8% in 2022 to 30% this year.

In Brazil, brands such as BYD have taken the leading position in the sales rankings of electric vehicles and hybrid vehicles. It is expected that within this decade, Chinese automobile manufacturers such as Chery, JAC Motors and Great Wall Motors will also promote Brazil's domestic motor vehicle production. It is now playing a decisive role in the transition to electrification.

About 45% of electric vehicles sold in Brazil in 2022 will be from Toyota's Corolla series. But by 2023, this market share of Toyota Corolla systems is expected to drop to 25% as Chinese automakers continue to introduce new products in the Brazilian electric vehicle market.

As new models of Chinese brands continue to land in Brazil, the market share of Chinese electric and hybrid vehicles in Brazil may further expand in 2023.