Tax and fine will make exclusive electric cars more expensive – 03/11/2024 – Market

Exclusive electric cars in Brazil, which can cost more than R$1 million, will become even more expensive. After the resumption of the Import Tax, at a rate of 35%, the Mover (Green Mobility) program provides new rules for independent vehicle importers.

There will be an extra fee of 20%, in the form of a fine, which will apply to cars brought by companies that are not official representatives of the brands. The package of rules also creates the possibility of importation by an individual — in this case, it will be necessary to keep the car for a minimum period of three years.

The new requirements, which should be regulated soon, arrive amid changes in the business profile. Previously, retailers mainly brought sports cars or luxury gasoline-powered SUVs. The list included vehicles that did not regularly arrive in Brazil, as well as rare models from brands such as Porsche, Ferrari and Aston Martin. Today, however, it is the electric models that appear in the spotlight.

With 16 units sold in Brazil in 2023, the Tesla Model 3 sedan is advertised for prices between R$450,000 and R$600,000. The Model X SUV (11 registrations last year) costs up to R$1.6 million. Another American tram brand that is starting to attract attention is Rivian. Its R1T electric pickup truck, which costs approximately R$1 million in the national market, had eight licenses in the country.

According to Abradelc (Brazilian Association for the Defense of Free Trade), the new requirements may make the work of independent importers impossible. Luciano Bushatsky, lawyer and spokesperson for the entity, states that the requirements created prevent negotiations from being carried out without paying the 20% fine, which is calculated on the supposed sales value of the vehicle.

“There is already a Denatran lock [Departamento Nacional de Trânsito] which limits the volume to 20 cars imported annually per CNPJ, with only two units of the same brand, model and version being able to be brought”, says the lawyer.

Abeifa, which represents official vehicle importers, defends the new legislation. “In a way, what is happening today is unequal competition. If we look at the obligations, the official importer has a responsibility to supply parts for decades, it is a higher investment”, says João Oliveira, president of the entity.

The executive states that there is also the issue of recalls. “Assemblers make tooling and parts available to official importers and stay on top of the companies to know if the customer was found and if the repair was carried out.”

João cites the example of Ferrari, whose cars arrive both through an accredited company and through independent retailers. “The first thing the manufacturer will do is notify its official importer that there is a problem.”

Abeifa argues that these recall procedures will only be carried out satisfactorily if the car has officially arrived in Brazil. Independent importers, however, say it is possible to maintain service in these cases, including hybrid and electric cars.

Eduardo Kano, managing partner of Paito Imports, has already sent Tesla Model X units for repairs in the United States. According to the automaker, 55,000 cars manufactured between 2021 and 2023 had brake system failures.

“The procedure is called temporary export for repair, which is regulated by the Federal Revenue Service and can be done either in the name of the owner or in the name of the store. The car is sent to the country of origin, where the repair is carried out”, says Kano . In this case, all expenses are paid by the retailer.

The businessman also explains that brands such as Porsche and Mercedes-Benz allow owners of independently imported models to have access to the factory warranty in Brazil. However, you must pay a fee at the dealership network.

For importers of electric vehicles without representation in Brazil, the combination of fines and Import Tax immediately affects business, as these companies do not have access to the exemption quotas provided for official resellers.

“With the return of taxation, we will suffer an impact on imports of Tesla models, as it greatly increases the final value of the product”, says Tarcísio Moraes Alves, responsible for the new business area of ​​the Osten dealership group. “Compared to other vehicles on the market, it becomes a commercial challenge, but the public that desires this type of vehicle has different consumption behavior and understands that exclusivity has its price.”

Despite the fees, Alves states that the Osten group is interested in advancing the import of exclusive cars and investing in solutions for electric cars. We are investing in the charging infrastructure market to make consumers safer in their daily use of vehicles.”

In a note, the Mdic (Ministry of Development, Industry, Commerce and Services) explains how the Mover rules involving independent imports were defined. One of the points addressed is the improvement in inspection of the entry of these vehicles. See the full text sent by the ministry:

“The Green Mobility and Innovation program expanded the decarbonization requirements of the Brazilian automotive fleet and increased the mandatory requirements for the sale of new vehicles in the country, taking into account energy efficiency, vehicle labeling, recyclability and safety.

The requirements contained in the Provisional Measure that established Mover are the same for all actors involved – independent importers, authorized importers and national manufacturers – and seek to ensure compliance with the program’s goals and consumer safety.

Imports by individuals, guaranteed by law, are also subject to rules defined in the MP – among them, the knowledge of the authorized importer and the restriction on the sale of the vehicle for three years. The preparation of the MP included the participation of the MF [Ministério da Fazenda]from MCTI [Ciência, Tecnologia e Inovação] and the Civil House; and the rules that seek to improve supervision over the entry of vehicles into the country were created in conjunction with the Federal Revenue Service.”

In a note, the Abradelc representative states that the entity is not against Mover, but asks for another treatment. “The association’s position is in favor of the new automotive regime, as long as the barriers that prevent independent importers from operating in the market are removed.”