Sales of imported cars set to increase in June – Anfavea

Marcio de Lima Leite, president of Anfavea, announced that sales of imported vehicles are expected to rise in June due to upcoming changes in car import taxation, according to Reuters. The increase is not driven by price fluctuations but by impending tax hikes on foreign vehicles.

Starting in July, the import tax will rise from 10% to 18% for electric cars, from 12% to 20% for hybrids, and from 15% to 20% for plug-in hybrids.

“In June, we anticipate a significant surge in sales, particularly for electric vehicles, as the tariff increase to 18% takes effect in July,” Lima Leite stated.

He also noted that vehicle registrations, which saw a 9% decline in May for imported products, are expected to catch up in June. Despite this dip, the segment still recorded a 20% increase compared to the same period last year.

The impending tax hike is likely to accelerate sales and challenge new entrants, particularly Chinese brands such as BYD and GWM. These brands will face increased import taxes starting in July until they establish localized production operations.

A price increase is anticipated from July 2024 to June 2025, with the new rates in effect. The rates will further increase until they reach 35% by June 2026.

It remains uncertain how long Chinese manufacturers can sustain their sales under these conditions until local production begins and the import tax hits the WTO limit.

Nevertheless, with entry barriers in the USA and Europe, Brazil’s open market presents an attractive opportunity for these manufacturers to quickly gain market share.

Source: Notícias Automotivas

Click here to access the original news piece: https://www.noticiasautomotivas.com.br/venda-de-carros-importados-aumentara-em-junho-segundo-anfavea/

Sharing is caring!