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EVs Flock in Brazil Before New Tariff Takes Effect
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2024-06-03
Brazil's car import soared in the first quarter of 2024, driven by an inflow of EVs from China. The data released by the Brazilian Ministry of Development, Industry, Trade and Services showed that from January to March, Brazil's passenger car import increased by 46.4% year-on-year, reaching a market value of USD 1.5 billion.
Out of this market value, Chinese cars alone accounted for about 40%, and the import surged by 450% compared with the same period in 2023. The Ministry said the growth in import was driven by cars imported from China, which were mainly pure electric and hybrid vehicles.
The import tax on EVs had been reduced to zero since 2015, but Brazilian President Lula reinstates it this year to encourage the development of the domestic auto industry. Starting in January, the import tariff for pure EVs is 10%, which will be increased to 18% in July and eventually reach 35% in July 2026. Hybrid vehicles will be subject to a 15% import tax starting this year which will rise to 25% in July and reach 35% in July 2026.
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