Brazil automotive industryThe Brazilian business is regulated by the Associação Nacional dos Fabricantes de Veículos Automotores (Anfavea), designed in 1956, which contains automakers (automobiles, light cars, trucks and buses) and agriculture machines with factories in Brazil. Beneath stress to reduce the public deficit, the Brazilian government has reinstated a customer tax on new cars (IPI), which will raise prices among 4.five% to 7%, depending on the vehicle’s size. This means that Brazilian car companies have to pass a greater tax burden on to buyers in an adverse economic environment. In addition, the Federal Government has began a deep spending review, cutting several projects and subsidy applications, and it is rather unlikely that it will have sources to assistance the ailing automotive sector.
As soon as once more aggressive measures are needed if Brazil’s automotive industry is to regain its competitiveness. If these measures are not taken, then the danger looms huge and one more economic bubble can be produced. Claiming import duty protection then will only be a measure of how numerous crucial decisions had been not taken in 2005.
The programme succeeds the Inovar-Auto, another tax incentive programme that expired on December 31 2017, which was quite relevant to the automotive sector in Brazil. The agreement established the “Operating Group on Automotive Technical Regulations” to evaluate the technical regulations both nations adapt, which includes these controlling automobile security, power efficiency and gas pollution.
Automobile Industrybrazil automotive industry growth
brazil automotive industry analysisThe Brazilian sector is regulated by the Associação Nacional dos Fabricantes de Veículos Automotores (Anfavea), produced in 1956, which includes automakers (automobiles, light vehicles, trucks and buses) and agriculture machines with factories in Brazil. Penske’s Sarti suggests Rota 2030 is very critical to the automotive sector in the country. As soon as it is implemented, he says, carmakers … Read More