The cheapest popular car costs R$ 69 thousand; see ranking – 05/25/2023 – Market
Renault Kwid and Fiat Mobi, the cheapest zero-kilometer cars in the country, cost around R$ 69,000, according to a survey carried out by Sheet with automakers. Among the ten most affordable models, the price can reach close to R$ 85 thousand.
In the list, there are also cars like Citroën C3, Hyundai HB20 and Chevrolet Onix.
Popular cars are the target of a plan announced by Vice President Geraldo Alckmin (PSB) this Thursday (25) that will reduce the IPI and PIS/Cofins for vehicles of up to R$ 120,000. The Lula government’s objective is to lower the initial prices of compact models with a 1.0-liter engine to a range between R$50,000 and R$60,000. The tax reduction will apply to vehicles of up to R$ 120,000 and the discount will be greater for cheaper models.
For Milad Kalume, business development manager at Jato Dynamics, despite the tax reduction, the government will need to pay attention to other problems, such as high interest rates. According to him, the average Brazilian vehicle ticket has doubled in the last five years and the financing installments have gotten bigger.
“The price of the car is much higher, so you have to finance a very large installment to buy your new car. The interest rate is very high, credit for financing is restricted. We practically reversed the rule we had years ago it would be 70% financing and 30% in cash. Today, we are 60% in cash and 40% in financing”, he says.
According to Kalume, car prices in recent years have also been impacted by the shortage of semiconductors —electronic components that are present in the brake system, airbags, engine management, multimedia equipment and various other parts of a car.
He explains that, while the auto industry stopped at the beginning of the pandemic, amid uncertainties about the future, the electronics sector experienced a sales boom, stimulated by the home office. When automakers returned to production, they were at the back of the queue, he says.
The high prices of popular cars have become a frequent complaint by President Lula. “The car factory is not selling well, but what poor person can buy a R$90,000 popular car?”, questioned the president, during the inaugural session of the Development, Economic and Social Council, at the beginning of the month.
According to the new plan announced today, the decrease in final vehicle prices will vary between 1.5% and 10.79%, with greater discounts for cheaper cars. The rates for each reduction range will still be announced by the government.