Portuguese 
English 
Spanish 
3 min of reading 
The Federal Government Is Preparing to Announce a Series of Incentives for the Automotive Industry, Including the Return of Popular Cars in Its First Phase.
According to information from the Ministry of Development, Industry, Commerce and Services (MDIC), the goal is to launch an incentive plan for the entire industrial chain, with measures that include credit lines for the manufacturing sector, tax reductions, an increase in the level of nationalization of manufactured goods, and a financing program for vehicles.
The measures primarily focus on entry-level cars, aiming to reduce the starting prices of compact models with a 1.0 engine to a range between R$ 50 thousand and R$ 60 thousand. The official announcement is scheduled for May 25, a date that celebrates Industry Day.
With the Initiative, the Government Hopes to Strengthen the Brazilian Automotive Sector, Which Has Been Facing Difficulties in Recent Years
The sector has had to adapt to stricter safety and emissions control regulations, which have raised vehicle prices and affected sales volumes. Additionally, the economic crisis and the pandemic led companies to focus on more profitable models, leaving less profitable models, such as popular cars, behind.
-
The largest food company on the planet, JBS, has just opened a 4,000 square meter laboratory in Florianópolis to develop customized proteins that modulate muscle mass gain, immune response, and metabolic performance.
-
After nearly 30 bids and competition among industry giants, a Spanish company purchases one of the largest airports in Brazil for almost R$ 3 billion and takes over the management of Galeão in a concession that will last until 2039.
-
The car stored for 38 years: when opening the barn door, what appears is breathtaking and looks like a scene from a movie!
-
Fiat works miracles in the Brazilian market, lowers the price of its 0 km hatch to R$ 69,990, reestablishes the model as the cheapest car in the country, and reignites the battle against Kwid and C3.
With the measure, the expectation is that there will be price reductions and long-term financing, but without the need to meet a value below R$ 60 thousand to access tax benefits. One of the criteria used for this selection may be energy efficiency, which would benefit less polluting models. There is also the possibility that the incentives will include stimuli for local production of hybrid and electric cars.
The Measure Goes Beyond Automakers and Aims to Incentivize the Entire Industrial Chain
Therefore, the possibility of credit lines for the manufacturing sector and tax reductions is being discussed, in addition to a financing program for vehicles. The expectation is that the package will be announced at Fiesp’s headquarters (Federation of Industries of the State of São Paulo).
For brands that do not offer low-cost models, the idea is to create ways to reduce the prices of existing automobiles, without removing the minimum possible equipment. This is because, according to representatives of the automakers, an stripped-down car without content does not meet what Brazilians want.
On the other hand, companies that already have more accessible models, such as Renault, are interested in joining the plan and adapting their models. Today, the cheapest car from the brand in Brazil is the Renault Kwid in the Zen version, produced in São José dos Pinhais (PR). The vehicle costs an average of R$ 69 thousand and is equipped with electric steering and air conditioning.
The Idea of the Incentive Plan Is to Reduce the Price of Popular Cars and Expand Market Access
The financial sector, in turn, needs to offer attractive rates for individuals, without this implying credit risks. One of the ideas to circumvent the problem is the use of FGTS as collateral. In this way, the money would not be effectively used to purchase the car, but could be accessed by banks in case of default.
All the measures aim to stimulate retail sales, but it is likely that simpler cars will end up in car rental fleets. These models would be in demand, for example, by app drivers who subscribe to long-term rental programs. According to data from the National Association of Automotive Finance Companies (Anef), payment delays of more than 90 days reached 5.9% of contracts, representing an increase of 1.5% compared to 2021.
The automotive industry is one of the most important sectors of the Brazilian economy and has significant representation in the international market. With the government’s incentive plan, it is expected that the sector will start to grow again and contribute to the recovery of the Brazilian economy. The official announcement will be made on May 25 at Fiesp’s headquarters.
Seja o primeiro a reagir!