Cars electric should be more expensive Brazil with a refund of import tax, which was reset to zero in 2015. Rumors of talks between the federal government and Brazilian Association of Automobile Importers and Manufacturers (Abeifa) indicate that a progressive increase in the taxation of these vehicles with an annual amount of two% for electric with battery, 4% for hybrids and 7% for mild hybrids with 48V battery.

If approved, the measure could further affect the price of this type of vehicle, which already costs more than ICE models. Domestically, the cheapest currently available are the JAC E-JS1 at R$145,900 and the Renault Kwid e-Tech at R$146,990.

In accordance with John Oliveira, president of Abeifa, the zero tax is an inconvenience for EV makers because production costs are not being reimbursed. Since the tax was abolished, imports have increased, i.e. more sold and due to greater consumer demand, but no domestic production.

However, the executive branch does not believe that this is the only factor. This growth has also been fueled by the global growth of electric vehicles and the move away from combustion engine vehicles, which are beginning to be sidelined in new technology development due to global concerns about sustainability.

The electric park has grown over the past year

There are about 126,000 vehicles of this type circulating in Brazil today, but only 13,000 are all-electric, not hybrid. This number, despite growing from 2022 to 2023, is still small compared to the total fleet.

There is no word on when or if the measure will be approved, but Abeifa is in direct talks with the government to minimize any impact on the sector and assess potential improvements as it interferes with a market of global importance.

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Via: AutoData

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