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BYD anticipates tax increases and brings 100.000 hybrid and electric vehicles – Understand how BYD is revolutionizing the car market in Brazil, ensuring competitive prices before July
BYD continues to make headlines with its arrival in the region. After unloading more than 5.000 cars in Brazil at once with its own ship, it has now announced that it will bring in up to 100.000 hybrid and electric cars before the start of July.
The Chinese brand's decision is motivated by the fact that, from July 1st, hybrid and electric cars in Brazil will suffer an additional increase in import tax.
With this action, the company seeks to maintain the low prices it has been offering since the beginning of the year, as this new tariff could lead to costs being transferred to consumers. To anticipate this change, BYD wants to reach the mark of 100.000 vehicles imported from China before July.
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This volume should be enough to supply the company's operations in Brazil until the end of the year, when local production is expected to begin in Camaçari, Bahia, in the north of the country.
Even if storage costs occur in Brazilian ports or in distribution centers in different regions of the country, these expenses would be less than the additional cost of the higher tax.
An Unusual Movement
This unusual movement is due to the substantial increase in import tax, which will increase from 10% to 18% for electric vehicles and from 12% to 20% for plug-in hybrids from July. Non-externally rechargeable hybrids, a category in which BYD does not participate, will be charged a 25% charge.
An Unprecedented Volume of BYD Cars
According to sources close to the brand, between January and May this year, BYD imported approximately 30.000 vehicles to Brazil, of which 25.000 were already registered in mid-May and 5.500 were recently unloaded at the port of Suape, in Pernambuco.
There are still approximately 65.000 vehicles to arrive in a month to meet the target. To achieve this, BYD will need to carry out an intense logistics operation to ensure that all vehicles enter the country before June 30th, thus avoiding the tax increase. This operation is already underway, as more than a dozen ships loaded with branded vehicles are scheduled to dock at Brazilian ports in the coming weeks.
Each ship must transport an average of 3.500 units to reach the objective, which implies a very frequent arrival of ships, approximately one every two days. “Our hours vary. We can receive ships every three days, a week or more. It all depends on the calendar”, Leonardo Felippe, director of supply chain at BYD, explained to the media.
Currently, BYD operates in the ports of Suape (PE), Vila Velha (Espírito Santo) and Itapoá (Santa Catarina), using Ro-Ro type ships, which allow the entry and exit of vehicles with their own wheels.
If the Chinese manufacturer manages to import 100.000 cars by July, it will set a record in Brazil for the largest arrival of imported vehicles in a six-month period. This will also reflect a significant jump in the brand's results in Brazil. In 2023, BYD registered 18.000 units in the country, and in the first four months of 2024 there were almost 22.000.
If BYD manages to sell 100.000 vehicles in 2024, not only will it grow more than five times compared to the previous year, but it will also reach the registration volume that Renault achieved last year in passenger cars. The Chinese brand is already among the ten best-selling in the Brazilian market.
Logistics Challenges and Benefits
Importing such a large number of vehicles represents a considerable logistical challenge, but will also offer significant savings, allowing the company to avoid passing on costs to customers until production begins at the Camaçari factory.
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