In the last year, there was a 30% increase in vehicle imports in Brazildriven by cars electrical Chinese.
Given this, automobile manufacturers with local production demand measures to protect the local industry, such as the measures adopted by the European Union or the ones you are about to take donald trump in USA.
According to data from the National Association of Automobile Vehicle Manufacturers of Brazil (Anfavea)registrations of imported cars totaled 466,500 units in the full year of 2024, 33% more than the previous year. This is the highest volume of imports in the last decade. Of this total, nearly 200,000 are electrified models from China.
Chinese cars, a problem for the Brazilian automotive market
The problem they raise is the different tax treatment that vehicles have. The issue was raised by the president of Anfavea, Márcio de Lima Leite.
The manager warned that The standard 35% vehicle import tax rate has been reduced for electrified vehicles, while European countries and the United States have raised or threatened to raise the tax in the last year to contain the significant entry of Chinese cars, especially electric ones.
“We ask for the immediate full refund of the tax. The world has changed and this has led to the excess production of China be poured into Brazil,” he said in an interview with Bloomberg Línea.
Currently, combustion vehicles in Brazil have the highest import tax rate allowed by the World Trade Organization (WTO), 35% (except those from regions with bilateral agreements, such as Mercosur and Mexico).
Electric models, which previously had an almost zero import tax, recently saw their tax rate increased to 18%, and will now have two new increases, to 25% in July of this year and then to 35% in July 2026.
Plug-in hybrids (which are charged externally) will have the import tax increased from 20% to 28% in July and then to 35% in 2026. The tax on light and full hybrids will increase from 25% to 30% this year and to 35% in July 2026.
In Leite’s opinion, the excessive influx of vehicles is detrimental to Brazil, explains the specialized media. “As local manufacturers, we often use this import mechanism, but we cannot lose competitiveness because of low rates,” he said.
The situation occurs in the midst of controversy over the establishment of Chinese brands in the country The Brazilian government revealed that it is investigating the Chinese company BYD and one of its subcontractors for allegedly subjecting Chinese workers to a regime of labor exploitation in a factory in Brazil.
Federal authorities are evaluating possible crimes after inspectors discovered 163 workers in slavery-like conditions at a factory in Camaçari, in Bahia state.
The workers, hired by the subcontractor Jinjiang Open Engineeringwere considered victims of human trafficking for the purpose of labor exploitation.
China’s Ministry of Foreign Affairs has been informed and is investigating the situation. According to the spokesperson, China has always defended workers’ rights and required companies to comply with the law.
BYD, an acronym for Build Your Dreams, has quickly become one of the world’s leading electric vehicle manufacturers. Its rise has been fueled by its dominance in the Chinese market and strategic global expansions, including Brazil, its largest foreign market.
The Bahia factory, whose construction has been halted, was going to be BYD’s first EV plant outside Asia, part of a US$484.2 million investment to strengthen its presence in Latin America. This plant, planned to open in March 2025, would produce electric cars and generate jobs in the region, marking a significant step in Brazil’s push for green technology.
BYD, praised for its innovation, faces a setback with this recent labor scandal, which highlights the difficulties of maintaining ethical standards in large global projects.
Source: Ambito
