Rota 2030 aims to improve energy efficiency by 12 percent

Last Thursday, President Michel Temer approved a new Federal Government automotive program, known as Rota 2030. Temer signed a decree minutes after Senate approval. Temer participated in the opening of the Motor Show in São Paulo and said he was unsure if the Senate would approve the initiative.

The program will run for the next 15 years. It will also provide tax credits of around R$2.1bn in 2019 and R$1.5bn in 2020.

Brazil wants to achieve a 12% energy efficiency for both passenger and goods vehicles by 2022. Also, the program will develop the auto-parts sector and next-generation design features, such as battery-driven cars and lighter chassis. The program has replaced the WTO condemned Inovar-Auto program which ended last year. Rota 2030 program aims to establish a framework for vehicle production and marketing. The government also aims to improve supply chain management, enhance energy efficiency, and utilize new technologies to meet international standards. Moreover, the program offers a 10.2% tax exemption on investments, with the further possibility of deductions on Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL).

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