Government Authorizes Temporary Import of Disassembled Kits for Electric and Hybrid Vehicles, Creates Global Cap of US$ 463 Million and Anticipates Taxation Schedule, Altering the Strategy of Major Automakers Established or Expanding in the Country.
The federal government has authorized 16 automakers to import hybrid, plug-in hybrid, and electric vehicles in CKD (completely disassembled) and SKD (semi-disassembled) mode with a zero import duty for six months.
The release, published on Tuesday, August 12, 2025, is provided in Secex Ordinance No. 420/2025 and establishes a global cap of US$ 463 million for the set of authorized companies.
The amount will be distributed according to the criteria of the Ministry of Development, Industry, Commerce, and Services (MDIC).
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What Changes for Automakers
In the window between this month of August 2025 and January 2026, the authorized companies can internalize CKD and SKD kits without paying import duty, provided they comply with the defined overall quota.
After that, the tariff schedule will return, mandating a 35% tax on disassembled vehicles from January 2027, moving up the originally scheduled date from July 2028.
Brands Benefited by the Measure
The following brands have been authorized:
- Audi
- BMW
- BYD
- Caoa Chery
- GAC
- GWM
- Honda
- Hyundai
- Jaguar Land Rover
- Kia
- Mercedes-Benz
- Omoda-Jaecoo
- Porsche
- Renault
- Toyota
- Volvo
The group includes both manufacturers with local operations and companies planning to begin production in the country.
Among those already with factories in operation in Brazil or advanced industrial projects are Audi, BMW, BYD, Caoa Chery, GWM, Honda, Hyundai, Renault, and Toyota.
This set is likely to have greater logistical capacity to take advantage of the exemption window.
BYD Request and Intermediate Solution
The measure arises after Camex rejected a request from BYD for a tax rate reduction for disassembled kits for three years.
The company proposed to reduce tariffs to 10% (SKD) and 5% (CKD), a request that was not accepted.
Instead of a prolonged exemption, the government adopted a temporary arrangement: six months of quota with zero tariff for all authorized automakers.
At the same time, it anticipated the return of the full tax rate of 35% to January 2027.
How the Quota Will Be Divided
The global cap of US$ 463 million is not individual by brand. The MDIC will allocate according to the criteria defined in the ordinance, considering authorization and operational requirements.
This arrangement, according to the government, aims to provide a transition for companies that are structuring assembly lines in the country, without foregoing the tariff readjustment schedule.
Immediate Effects on the Automotive Sector
Automakers already operating in Brazil or with advanced projects for new factories are likely to gain momentum in the short term.
These companies can more rapidly nationalize the kits and start or expand local assembly of hybrids and electric vehicles.
For automakers focused on importing ready vehicles, adapting to CKD/SKD regimes in a few months is more complex.
The process requires assembly lines, suppliers, and specific logistics.
The effect is to concentrate the use of the quota on brands with greater industrial readiness.
Future Tariff Schedule
The government emphasized that after the six-month period, the policy will revert to the full tariff standard for vehicles in CKD and SKD.
The 35% tariff will apply starting in January 2027, about a year and a half earlier than the earlier expectation of July 2028.
The strategy, according to the government, seeks to align the temporary incentive with the nationalization of production of electrified vehicles.
What are CKD and SKD
Under the CKD regime, the vehicle arrives completely disassembled and is assembled in the country, with local processes for welding, painting, and component integration.
The SKD regime involves the arrival semi-disassembled, with part of the set already assembled from the factory.
The temporary exemption for these formats reduces the entry cost of electrified models while local lines are consolidated.
Even so, it does not change the commitment to resume the 35% tax within the defined timeframe.
Who Can Benefit the Most
Brands like BYD, Honda, and Toyota, with industrial expansion projects, are well-positioned to accelerate the offer of hybrids and electric vehicles assembled in Brazil during the benefit period.
The same applies to Audi, BMW, Caoa Chery, GWM, Hyundai, and Renault, which already have production structures in the country.
The complete list also includes GAC, Jaguar Land Rover, Kia, Mercedes-Benz, Omoda-Jaecoo, Porsche, and Volvo.
Perspectives for the Brazilian Market
While the cap of US$ 463 million is in effect, the market is expected to see an increase in locally assembled launches and versions, especially in hybrids and plug-in hybrids.
The transition from SKD to CKD is likely to occur more rapidly in new plants.
In January 2027, with the 35% tax reestablished, the focus will shift to the nationalization of content and scaling up to maintain competitive prices.

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