Understand How The New Government Program Works That Reduces IPI For Some Vehicles And Increases Taxation For Others, Directly Impacting The Price Of New And Used Cars.
The government launched the program “Sustainable Popular Car”, an initiative that promises to shake up the Brazilian automotive market with price reductions that can reach almost R$ 20,000 on some models. The measure, which reduces IPI (Tax on Industrialized Products) for more efficient vehicles produced in Brazil, aims to incentivize the national industry and renew the fleet.
However, the news works like a scale: for some cars to become cheaper, others, deemed less sustainable, will face higher taxes and become more expensive. Understand who benefits and who loses with this change.
How Does The Discount For Popular Cars Work?
For a vehicle to be eligible for the IPI discount, it must meet three strict criteria focused on sustainability and national production:
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- Low Emissions: The car must emit less than 83 grams of carbon dioxide (CO2) per kilometer driven.
- Sustainability: At least 80% of the materials used in the body construction must be recyclable.
- National Production: The vehicle, including the body stamping and engine, must be manufactured in Brazil.
The categories covered are: subcompact cars, compact cars, small SUVs, and small pickups.
Which Cars Are Already Cheaper?

Some manufacturers have already gotten ahead and announced the models with reduced prices. At Volkswagen, for example, the T-Cross 200 TSI had a reduction of R$ 10,000, while the Saveiro single cab received one of the largest discounts so far. At Fiat, Mobi and Argo already have new prices, and at Renault, the Kwid is the first on the list.
Other brands like Chevrolet, Hyundai, Citroën, and Peugeot are expected to announce their included cars in the coming days.
And Which Cars Will Be More Expensive?
The program is based on a “tax reorganization”. This means that the tax reduction for popular cars will be compensated by an increase in rates for other models. The following will become more expensive:
- Imported Models: Models like the Fiat Cronos (Argentina) and the Nissan Versa (Mexico) are not included in the program.
- Gasoline Models: Cars like the Jeep Compass Black Hawk and the Chevrolet Equinox will see an increase in their rates.
- Diesel Models: SUVs and pickups like the Chevrolet Trailblazer, Mitsubishi Pajero, and Toyota SW4 will also be taxed more.
- Larger Models: Vehicles like the Toyota Corolla Cross and the Jeep Compass, due to their size, will also be excluded from the benefits.
Who Is Hurt By The Change?
The measure, although beneficial for those planning to buy a new popular car, creates a side effect for three other groups:
- Those Who Recently Bought A Car: Those who purchased one of the models now included at the full price will see their vehicle depreciate sharply.
- Owners Of Used Cars: With the drop in prices of new cars, the used car market will also be forced to lower prices to remain competitive.
- Those Wanting A Car That Will Be Taxed: Consumers planning to buy a larger SUV, an imported model, or a diesel vehicle will have to bear the price increase.
The program is valid until the end of 2026. And you, which side are you on: the benefited or the harmed? What do you think of the initiative? Leave your opinion in the comments!


Bom, mais deveria ter mais opções e pelo menos fica em 30%, porque assim atende a demanda de muita gente, porque assim ainda fica benefícios para às pessoas com PCD que a família tem condições melhores que o pobre que precisa para ir ao médico e etc.