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Chinese automaker BYD has dodged R$1 billion in taxes with a maneuver to import electric vehicles. This strategy not only consolidated its leadership in the Brazilian market, but also raises questions about competition among automakers and tax dynamics, as its new factory in Bahia prepares to start operations soon.
Did you know that a simple import strategy can result in billions in savings for an automaker?
Chinese automaker BYD has managed to avoid paying R$ 1 billion in taxes in Brazil, and the reason behind this maneuver could change the electric vehicle scenario in the country.
By bringing forward the import of electric vehicles during the first half of 2024, BYD not only escaped high taxes, but also positioned itself as the market leader in Brazil.
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Growth in electric vehicle imports
According to the newspaper The Globe, the import of electric vehicles has grown 931% in the first half of 2024, compared to the same period in the previous year. This significant increase resulted in a total of $ 5,4 billion in imports.
BYD, which stands out in this scenario, was responsible for almost 90% of this volume, with the import of 114 thousand vehicles. The automaker has become a reference in the segment, consolidating its presence in the Brazilian market.
Sales on the rise
In the last month, they were sold 13.254 hybrid and electric vehicles in Brazil, resulting in a total of 122.548 units sold from January to September. This represents a growth of 113% compared to the same period of the previous year.
BYD has become the leader in the electric vehicle industry and ranks 10th position in terms of overall registration volume in Brazil. Excluding sales to rental companies, the Chinese automaker rises to 8th position.
BYD's anticipation strategy
Alexandre Baldy, Senior Vice President of BYD in Brazil, explained that the advance in imports guaranteed a sufficient volume of vehicles to sustain sales until the operation of the company's new factory in Bahia.
The factory, located in the Camacari, will begin its activities in December and should operate in its entirety in the first half of 2025.
This strategy aims to avoid raising prices for consumers, which could impact demand for their products.
BYD Distribution Logistics
Currently, the BYD vehicles are distributed in centers located close to strategic ports, such as those of Espírito Santo, Suape (PE) e Santa Catarina, avoiding the use of Port of Santos.
Baldy says the stocked volume is “much lower” than what competitors have reported, which demonstrates the automaker’s confidence in its ability to meet demand.
Complaints from traditional automakers
However, this move has not come without controversy. The high volume of electric vehicle imports has generated complaints among traditional automakers.
Marcio Leite, president of Anfavea, stated that the massive import of vehicles is making it difficult to bring in parts and components needed for local production, causing a hindrance in port operations.
Pressure on the government
In response to this situation, Leite used this argument to ask the government to bring forward the tax rate. 35% for 100% electric cars.
The gradual increase in taxes began in January with 10%, rising to 18% in July, with a forecast of reaching 35% in July of 2026. This strategy aims to balance competition conditions in the Brazilian automotive market.
BYD, with its strategic maneuvers, not only stands out in the electric vehicle market, but also raises questions about tax dynamics and competition between automakers.
How do you see the impact of BYD's strategy on the future of electric vehicles in Brazil?
If I were the government, I would impose a 60% tax on electric cars. So as not to disrupt the jobs of traditional car manufacturers.
They talk so much about the environment and tax electric cars. It should be the other way around when it comes to jobs. New factories mean new jobs. What the old car manufacturers really want is to push these bare, plastic carts at top-of-the-line car prices. What's missing is for Brazilians to wake up to life.
Decades of studying and manufacturing fuel-powered vehicles and a country that receives discontinued projects there
out but pays luxury car prices for junk. Who wouldn't want a market like that?
It will never be for the environment. If that were the case, cars over 20 years old would continue to pay taxes, in fact, higher taxes than new cars.
Another thing, the extraction of the mineral used to produce batteries has a major impact on the environment.
Are you very ****?
****?
And that's all there is to it...where is the crime of tax evasion?
You read without understanding.
Whoever buys these cars next year is buying a car that is one or two years older... the battery is also older (with a shorter useful life)... the consumer has to be protected from this trickery... otherwise they will be harmed.
It's amazing how a Chinese company gets institutional support.
I don't know what the counterpart is for the government.
In fact, all the benefits generated by consumption remain in China.
Employment, material consumption, taxes, etc.
Sad nation governed by incapable people…
Well, it's impressive how BYD managed to do something the Brazilian government can't – do something right!
European and American companies don't take the money to their parent companies, right?
On one side, a very well-advised team in this tax madhouse, on the other, car manufacturers whining about taxes and aid and without the capacity to face the competition. Free trade never, right?
Yes, because nobody likes paying taxes, but it's interesting how you traditionalists forget to mention that the competition is for yourselves!