Starting in 2024, purchasing an electric or hybrid car in Brazil will become more expensive. This change is the result of new tax policies that will significantly impact the automotive market. Currently, imported electric cars are subject to a tax of 10%, while hybrids will face an increase to 12%. This decision, influenced by ANFAVEA (National Association of Automotive Vehicle Manufacturers), aims to protect the national automotive industry, but has generated controversy, especially among electric vehicle advocates.
The new tax policy is a response to the technological advancement of foreign manufacturers, especially Chinese ones, who are offering electric vehicles at competitive prices. Brands such as BYD and GWM are at the forefront of this trend.
With the increase in taxes, electric cars intended for cargo transportation will suffer an even greater increase, with import duties rising to 20%. Therefore, this scenario will directly affect the prices of popular models from several brands, including Caoa Chery, Fiat, Hyundai, JAC, Jaguar, Nissan and Seres.
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Impact of new taxes on electric cars
The increase of taxes Import duties pose a new challenge for traditional automakers and Brazilian consumers. As a result, automakers will have to accelerate local production of hybrid and electric cars to avoid rising costs. Chinese brands such as BYD and GWM have already announced plans to produce locally, but will only be able to eliminate import taxes once production is effectively nationalized. Automakers such as Renault and Nissan may join forces to produce models such as the electric Kwid E-Tech locally.
New investments in electric and hybrid vehicles
Given this scenario, an increase in investments in infrastructure for electric cars is expected. A race to make the flex-fuel hybrid car, using ethanol, viable is also expected. For example, the Graal gas station chain plans to make fast chargers for electric cars available at all of its units. The goal is to encourage the use of ethanol over gasoline, which is the preference of 70% users in Brazil.
The purchase of electric and hybrid cars in 2024 will become more expensive due to the increase in import taxes. This scenario therefore challenges automakers to accelerate local production and invest more in sustainable technologies. For consumers, it means adapting to a changing market, where the cost of electric and hybrid vehicles will be a decisive factor.
