Brazil's car imports soared in the first quarter of 2024, driven by a flood of electric vehicles from China. Data released by the Brazilian Ministry of Development, Industry, Trade and Services on Thursday showed that from January to March, Brazilian passenger car imports increased by 46.4% year-on-year, reaching US$1.5 billion.
Among them, Chinese cars alone account for about 40%, and imports have surged by 450% compared with the same period in 2023. Saulo Castro, statistics coordinator at the ministry, said the growth in vehicle imports was driven by cars imported from China, which are mainly pure electric and hybrid vehicles.
Import taxes on electric vehicles have been reduced to zero since 2015, but Brazilian President Lula will reinstate them this year to encourage the development of the domestic auto industry. Starting in January, the import tariff for pure electric vehicles will be 10%, which will increase to 18% in July and eventually reach 35% in July 2026. Hybrid vehicles will be subject to a 15% import tax starting this year, rising to 25% in July and reaching 35% in July 2026.
