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Driven by a Government Incentive Program, the Popular Car Market Records Strong Growth, According to Data from Fenabrave.
Sales of 1.0 Engine Cars showed a significant growth of 11.35% in July compared to the same period last year. The positive result is mainly attributed to the tax incentives of the Sustainable Car Program, which has encouraged demand for more economical models in Brazil.
The Brazilian automotive market showed signs of heating up last month. The sales of 1.0 Engine Cars grew 11.35% in July compared to the same month in 2024. The data was presented by the National Federation of Motor Vehicle Distribution (Fenabrave) to Vice President Geraldo Alckmin.
Sustainable Car Program Boosts the Sector
The increase is even more notable when compared to the previous month. From June to July, sales of these models rose by 13%. This performance is directly linked to the Sustainable Car Program, an initiative aimed at promoting the sale of more efficient and less polluting vehicles.
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Several popular models have been accredited in the program, which guarantees exemption from the Tax on Industrialized Products (IPI). Among the main 1.0 Engine Cars benefiting are the Onix (Chevrolet), Kwid (Renault), Polo (Volkswagen), HB20 (Hyundai), as well as the Mobi and Argo (Fiat).
Criteria and Impact for the Consumer
The program establishes clear criteria for granting the tax benefit. Factors such as energy efficiency, the propulsion technology used, the engine power, the level of safety offered, and the recyclability index of the vehicle materials are taken into account in the calculation for zero IPI.
For the consumer, the main impact of the program is the reduction in the final price of cars. This decrease makes acquiring a new vehicle more accessible, directly influencing the purchasing decision and stimulating the entry-level car sector in the country.
