Production of the Kia Sportage in Brazil could eliminate the 35% import tax, reduce the price of R$274.990 and bring more competitiveness to the hybrid SUV; Uruguay emerges as an alternative plan.
The Kia Sportage, one of the most beloved SUVs by Brazilians, may be about to enter a new chapter in its history in the country. To avoid the impact of import taxes, Kia is studying alternatives to produce the model within Mercosur, focusing on Brazil and Uruguay. But why is this so important? Let's explore this story and understand how the South Korean brand seeks to ensure the competitiveness of the Sportage here.
The Import Tax Challenge for the Kia Sportage
When it comes to hybrid SUVs, price is one of the main barriers for many consumers. Currently, the Kia Sportage arrives in Brazil imported from Slovakia, priced at R$274.990. Part of this amount comes from the 25% import tax charged on hybrid models. And, from July 2026, this rate can reach the ceiling of 35%.
To prevent the Sportage from becoming even less affordable, Kia is seeking a solution within Mercosur, which allows exemption from these taxes for products assembled in the region. This not only helps the brand maintain more competitive prices but also to face local competitors.
- End of an era: Renault abandons important hatchback in Brazil after 17 years to focus on compact SUVs!
- This is the car with the weakest engine in history — Only 4,2 (horsepower) and reaches a top speed of about 60 km/h
- Chevrolet confirms strike with suspended workers and 15 Onix no longer being produced in the coming months in Brazil
- BYD risks being sued in Brazil for unusual reason: selling very cheap cars
Production alternatives within Mercosur
The possibility of assembling the Kia Sportage in Brazil is one of the strongest strategies. José Luiz Gandini, president of Kia Brazil, revealed that the company is in negotiations with potential local partners. One option would be to use the new Comexport complex, which incorporated the former Troller factory in Horizonte, Ceará.
However, the decision depends on factors such as tax incentives, which in the Northeast already have an end date. Producing in Brazil requires careful planning, as costs need to be balanced to justify the investment.
Production in Uruguay: A viable plan B
If production in Brazil is not viable, Uruguay appears to be an interesting plan B. The Nordex complex in Montevideo already houses the assembly of Kia vehicles, such as the Bongo light truck, and could be a quick solution for the production of the Sportage.
With Stellantis leaving the site, which transferred production of Fiat and Peugeot models to Argentina, there is room for new projects. Kia could therefore take advantage of this structure and keep the Sportage competitive in the market.
What does the Kia Sportage offer the Brazilian consumer?
Despite facing import challenges, the Kia Sportage continues to be one of the brand's most sought-after models in Brazil. The EX Prestige version comes equipped with cutting-edge technology, such as a 1.6 turbo mild hybrid engine with 180 hp, a 12,3-inch multimedia center and a panoramic sunroof.
Furthermore, features such as adaptive cruise control, blind spot warning and induction charger show that the Sportage is made for those seeking comfort and safety. Local production could even expand the range of versions, making the SUV even more attractive.
The future of the Kia Sportage in the Brazilian market
The decision to produce the Kia Sportage in Brazil or Uruguay can define the future of the brand in the country. If it opts for a local factory, Kia will have more freedom to adjust prices and offer competitive versions. On the other hand, Uruguay offers speed and lower initial costs, which is also strategic.
Regardless of the choice, Kia's goal is clear: to keep the Sportage among the most relevant SUVs in Brazil. After all, the SUV market is one of the most competitive and dynamic, and every detail counts when it comes to winning over consumers.
Wonderful car, but lacking in the number of dealerships. Many large cities do not have specialized maintenance options.
Kia Motrs, personally among the cars I have owned, I have never been so satisfied with other Brands. I have not yet bought another one due to economic conditions, as soon as possible I will buy another one from the Brand
I have a Sportage and I'm buying another brand because of the price. It's a shame to leave Kia because I love my car and would really like to buy another one, but right now I can't. This strategy would be a good option.