Brazil's passenger car imports soared by 46.4% in Q1 2024, with a significant portion coming from China and consisting mainly of electric vehicles and hybrids. The Brazilian government is increasing import taxes on EVs and hybrid vehicles this year. Chinese automaker BYD is the top-selling electric car brand in Brazil, outpacing competitors like Great Wall Motors and Toyota during Q1 2024.
This figure will rise to 18% in July and peak at 35% in July 2026. Starting from the beginning of this year, hybrid vehicles were also subjected to a 15% import tax in January. This rate is set to increase to 25% in July and further to 35% by July 2026. Speaking with Reuters, the statistics director of the Ministry of Development, Industry, Trade, and Services, Herlin Brandao, said the government expects imports to slow when taxes are increased further.
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