Nearly 30 automakers join the cheaper vehicle program

Nine car makers, ten truck makers and nine bus makers joined the federal government’s program that provides for tax cuts to lower the value of cars in Brazil. The information was released this Wednesday (14) by the Ministry of Development, Industry, Commerce and Services (MDIC). With regard to passenger cars, the automakers Renault, Volkswagen, Toyota, Hyundai, Nissan, Honda, GM, Fiat and Peugeot showed interest in participating in the program. They made 233 versions of 31 car models available. The MDIC also reported that “the list is dynamic, that is, automakers may at any time include other models, as long as they communicate the MDIC”. The complete list of models and versions organized in alphabetical order, with the expected discounts, can be found here. The list organized by the value of the models can be accessed here. All these companies asked for the maximum amount of initial funds allowed at the time of joining the program, that is, R$ 10 million each, with six automakers – Volkswagen, Hyundai, GM, Fiat, Peugeot and Renault – asking for additional credit of more than R$ 10 million. The sum of the orders represents R$ 150 million, that is, 30% of the ceiling of R$ 500 million that can be used by companies in the abatement of taxes for the sale of cheaper cars. Also according to the ministry, “To the extent that they use the requested values, automakers can ask for additional credits. This possibility ends when the ceiling of BRL 500 million is reached”. Discounts on the final value of cars included in the federal government program range from R$2,000 to R$8,000, and may increase depending on the criteria used by factories and dealerships. The size of the discount on car prices will depend on three criteria: lower price, greater energy efficiency (less polluting) and a higher percentage of domestic content, which is the total number of car parts manufactured in Brazil. “The higher the score on these criteria, the greater the discount”, says the MDIC. Buses and Trucks Ten truck assemblers joined the fleet renewal program, adding a volume of discounts of R$ 100 million, which represents 14% of the ceiling of R$ 700 million available for this category. The companies that showed interest were Volkswagen Truck, Mercedes-Benz, Scania, Fiat Chrysler, Peugeot Citroen, Volvo, Ford, Iveco, Mercedes-Benz Cars & Vans and Daf Caminhões. In the case of buses, nine automakers joined the program. They are: Mercedes-Benz, Scania, Fiat Chrysler, Mercedes-Benz Cars & Vans, Comil, Ciferal, Marcopolo, Volare and Iveco. These companies requested discounts on taxes totaling R$90 million, equivalent to 30% of the ceiling of R$300 million made available to bus assemblers.

Agência Brasil