Brazil’s foreign trade committee, Gecex-Camex, said it will implement a 35% import duty on disassembled electric and hybrid vehicles 18 months earlier than planned, a move likely to affect manufacturers using completely knocked down (CKD) and semi-knocked down (SKD) assembly formats.
The decision advances the tariff schedule aimed at encouraging automakers to increase domestic production. Established manufacturers in Brazil operate full vehicle plants, including bodywork production, while BYD currently assembles imported components at its facility in Camaçari, in the northeastern state of Bahia. “It is significantly cheaper to import automotive parts than entire vehicles,” the committee said, noting the difference in manufacturing models.
BYD began assembling vehicles in Brazil in July at the former Ford industrial complex, its first plant outside Asia. The site, with an annual capacity of 150,000 vehicles, will also produce chassis for buses and trucks and process lithium. The first model to roll off the line is the all-electric Seagull, marketed locally as the Dolphin Mini and in Europe as the Dolphin Surf, alongside plug-in hybrids Song Pro and Chaser 05.
Brazil’s revised tariff strategy underscores the growing push for localisation as the country’s electric mobility market develops. With the new timeline in place, companies such as BYD will need to accelerate domestic assembly and sourcing plans to stay competitive.
Source: reuters.com, gov.br