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Association Fights Proposed Tax Hikes on Imported Cars: Advocates Resist Tariffs

Redação Realcom by Redação Realcom
julho 14, 2024

 

Association Pushes Back Against Proposed Tax Hikes on Imported Cars: Advocates Fight Against Unfair Tariffs Targeting Foreign Vehicles

Association reacts against plans to increase taxes on imported cars Entity argues that imported cars market share is below average compared to other countries‌.

If the proposals are approved, we will have more hybrid and electric cars, as well as combustion ones, paying even more taxes.

This week, a press conference convened by Abeifa (Brazilian Association of Importing and Manufacturing Companies of Motor Vehicles) expressed concern about the sector.

BYD tests a ship that transports 7,000 vehicles at the same time BYD/DivulgationIn June, out of the 202,474 licensed units in Brazil, 7,979 were imported.

These figures correspond to a market share of 3.94%, well below the expected average for a mature market where imported cars account for between 10 and 15% of sales.

Ship transported 5,000 vehicles to Brazil and arrived in Suape/PE”Protectionist measures or artificial customs barriers are always ineffective. In the medium and long term, they are detrimental to the entire automotive chain and especially to Brazil.

Imports, in addition to regulating the domestic market through competitiveness in technologies and prices, challenge local manufacturers to improve their own products and to effectively increase exports, which means that competitiveness questions the local industry,” said Marcelo Godoy, president of the entity.

BYD parts center in Vitória/ESIn the first six months of this year, 45,766 units were registered, a number that represents a market share of 4.25% of the total of 1,077,062 units in the Brazilian domestic market.

“If a local industry cannot compete with 10% of the whole, it needs to rethink its business and how it makes its vehicles,” said Godoy during the meeting.

The executive leading the entity called the proposals “regressive” for the sector, in addition to “protectionist” measures.

The entity argues that imported cars, within an acceptable range, serve to showcase new technologies to consumers.

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