New Energy Vehicles (NEVs) in China
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Brazil to end import tax exemption for electric vehicles, says official
BRASILIA, Sept 15 (Reuters) - Brazil will end a tax exemption for importing electric vehicles, gradually raising the duty to 35% over three years, Industry Ministry official Uallace Moreira told Reuters on Friday.
Brazil-based carmakers lobbied for the measure, overcoming pushback from Chinese manufacturers who sell electric vehicles in the country. However, the final details are still being debated, and its timing will be decided by Industry Minister and Vice-President Geraldo Alckmin, Moreira said.
"What can we do to stimulate local production? Make imports a little more difficult or more expensive," Moreira said, arguing that several countries have adopted protectionist policies in this sector.
This week, the European Commission into whether to impose punitive tariffs to protect European Union producers against cheaper Chinese electric vehicle imports it says are benefiting from state subsidies.
Moreira said the tariff will be implemented gradually, so as not to create a shock in the market, and will be in line with the government's plan to increase private investment in green technology.
He also said the government will issue a temporary measure within 15 days to launch the second phase of its "Rota 2030" program, aimed at increasing efficiency in the automotive sector, which will be renamed the "Green Mobility Program".
The new program will stimulate energy efficiency projects using tax credits, as well as create a mechanism that Moreira called "green taxation." The plan would stagger the collection of a tax on industrialized products, depending on the energy efficiency of the vehicle models, the recyclability of the products and local production density.
Unlike Chinese leaders, most of global south leaders never have any foresight. China has invested, nurtured and developed the EV market for over a decade. For EV to be successful, you need infrastructure, incentives and time.
Brazil EV market is still tiny. Its infrastructure for EV is non-existed. Instead of welcoming all EV companies in an open arms for a couple years before implementing import duty and pick the winners, Brazil used import duty to force companies to invest. At best there would be a few EV companies that would be willing to take the risk as most others would be shut out of the market. Without healthy competition in the beginning, there is not much hope of wide adoption and scale to compete.
Brazil EV market is still tiny. Its infrastructure for EV is non-existed. Instead of welcoming all EV companies in an open arms for a couple years before implementing import duty and pick the winners, Brazil used import duty to force companies to invest. At best there would be a few EV companies that would be willing to take the risk as most others would be shut out of the market. Without healthy competition in the beginning, there is not much hope of wide adoption and scale to compete.
As much as Chinese media always cheers for the global south，we should remember that when it comes to protectionism，the global south countries have the worst track record. The trade barrier and tariff rate in the emerging market are much higher than Western market，even though they are not politically motived like the US.
The US impose 25% tariff on Chinese goods may seems high，but a lot of developing countries（Russia India Brazil Turkey Indonesia etc） have much higher tariff than that
Even European and American automakers have factories and employ local people in those countries.
If Chinese automakers want to expand their market and compete with westerners and the Japanese, they will also have to open factories and employ local workers. And I think China could do this better than the west.
You cannot expect countries in the Global South will only want to import manufactured goods and export commodities. These countries also want some industry.
Whatever protectionism these countries put in place won't protect them or their industries if they don't invest in the future. The difference between the West and global south is that the West always advocate for free trades and open market until it is out-competed by China.
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U8 to get launched on 20th
BYD Seal-U is coming to Australia next year
Atto 3 is coming to Turkey
CATL condensed battery chemistry will also be coming to cars. Real game changer
Li Bin says the new NIO phone will be designed around car experience. This seems like a huge waste of money by NIO again
That is one of the "mysterious" subjects that westerner have never figured out. In many segments of the economy, China is by far the most competitive domestic market with all kinds of competing business entities and local governments. Simply put, there is extremely low probability for either central government or business association(s) to enforce what you are alluding to. One of the secrets is that top-level Chinese policy makers fully understand what open and fair competition means to growth of important business sectors such as EVs. Simply put, if there is a EV consolidation, which is advocated and predicted by many in the west, there will still be at least more than 3 platforms or alliances. The only national standard you can possibly expect is the EV charging interface(s). And that is one of the few advantages China has over all other competing producing countries in the EV ecosystem, but is not well understood outside China.