Accelerated imports generate increase in the supply of electric cars – 09/30/2024 – Eduardo Sodré

Imports of 100% electric vehicles in the first half of the year totaled R$5.4 billion. The number represents an increase of 931% compared to the same period last year, according to data collected by fintech Vixtra.

One of the reasons is the anticipation of purchases made by Chinese automakers, mainly BYD. With large production capacity, these companies stepped forward to circumvent the staggered increases in import taxes.

According to Vixtra, around 90% of the electric cars imported during this period were assembled in China. Guilherme Rosenthal, co-founder of fintech, sees other points involved.

“I understand that it is a confluence of factors that go beyond the tax issue, I do not believe that it is exclusively about anticipation to avoid high tariffs. This possibility contributes, but greater acceptance [dos elétricos] by the consumer, the state exemptions from IPVA and the non-application of municipal rotation in São Paulo are certainly relevant.”

For Jackson Campos, foreign trade specialist and institutional director at AGL Cargo, electric vehicles are beginning to fall in favor with Brazilians due to the technologies offered.

“Nothing sells more when talking about the Brazilian automotive market than the owner’s opinion combined with the comfort and practicality of these vehicles”, he says. “With future national manufacturing, the tendency is for prices to fall and electric cars to become more popular, which will also attract new brands to the country.”

The market, however, is starting to see an excess of supply. BYD stores are full of models from the Dolphin, Seal and Yuan lines for immediate delivery, which has led to repeated promotions.

These are actions that offer paid IPVA, free charger and “zero rate” financing.

Such promotions occur when a company needs to reduce its inventories in times of a slow market. This is not exactly what is happening now, when general sales figures point to a 13.3% increase in registrations. The data released by Fenabrave (resellers association) refers to sales between January and August this year compared to the same period in 2023.

Excess supply brings a concern: loss of resale value. BYD makes an effort not to reduce list prices, but it remains to be seen what variations in value will be in the used segment.

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