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The Brazilian government announced the progressive increase in import tariffs for electric and hybrid vehicles, reversing the exemption policy in force since 2015. The measure seeks to balance competition in the automotive market, impacting high-income consumers and encouraging national production of these vehicles in the Brazil.
In a measure aimed at boosting the national industry, the Brazilian government announced an increase in import tariffs on electric vehicles and hybrids. The decision, which reverses the zero tariff policy for electric vehicles in force since 2015, aims to promote local production and encourage the decarbonization of the automotive sector.
Progressive rates will be applied, reaching 35% in 2026, aiming to boost the national automobile industry
From January next year, electric or hybrid vehicles imported will pay tariffs between 10% and 12%.
These rates will be gradually increased, reaching 35% in 2026.
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The decision was officially announced at a meeting of the executive committee of the Chamber of Foreign Commerce (Camex) this Friday (10), confirming previous speculations made by CNN in October.
The percentages of progressive resumption of taxation will vary according to electrification levels, the production processes of each model and national production.
For hybrid cars, the rate will start at 12% in January 2024, increasing to 35% in July 2026.
Plug-in hybrids will face tax rates of 12% to 35% in the same period.
Electric vehicles will have initial rates of 10%, reaching 35% in July 2026.
The Minister of Development, Industry, Commerce and Services, Geraldo Alckmin, highlighted the importance of stimulating national industry towards technologies that promote decarbonization.
“Brazil is one of the main markets automobiles of the world. We must encourage national industry towards all technological routes that promote decarbonization”, stated the minister in an official note.
Electric and hybrid vehicles will have progressive rates, reaching 35% in 2026
Companies will have until June 30, 2026 to continue importing exemptly, within quotas established by model.
Quotas for hybrids will range from US$130 million until June 2024, US$97 million until July 2025 and US$43 million until June 30, 2026.
Plug-in hybrids will have quotas of US$226 million, US$169 million and US$75 million on the same dates.
For electric vehicles, the quotas will be US$283 million, US$226 million and US$141 million, respectively.
According to official sources, the zero tariff policy worked as a “subsidy” for high-income consumers, who purchase imported electric vehicles.
The ten best-selling electric or hybrid cars in Brazil, including models such as the Porsche Cayenne and the Volvo XC60, have final sales prices in the range of R$230 thousand to R$630 thousand.
With the increase in tariffs, a change in this scenario is expected, positively impacting local production.
The government identifies that China has dumped a significant part of its electric and hybrid vehicles in other countries, including Brazil.
With limited budgetary resources for incentives for national production, the increase in import tariffs is seen as a strategy to induce automakers to invest locally.
The measure aims to balance competition in the automotive market and boost the transition to more sustainable technologies.
As import tariffs increase, automakers are expected to seek internal solutions, contributing to the rise of national production of electric and hybrid vehicles in Brazil.
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