INSUBCONTINENT EXCLUSIVE:
In the first half of 2025, Brazil imported $2.7 billion worth of electric and hybrid cars, down from $3.4 billion in the same period last
year.The number of imported vehicles also fell, dropping 4.7 percent to 141,884 units
2015, now range from 10 to 25 percent and will reach 35 percent by mid-2026.The government says the tax break cost Brazil about 6 billion
reais, or $1.1 billion, in lost revenue each year
Electric car imports took the hardest hit, falling nearly 58 percent in value.Hybrid cars, however, rose slightly and now make up most of
as higher prices discouraged buyers.China now supplies over 62 percent of these imported vehicles, sending 134,582 cars to Brazil so far
this year.Chinese brands like BYD have taken a huge share of the market, with BYD alone holding about 90 percent of electric car sales by
most cars still arrive from China.Brazilian carmakers pushed for the return of tariffs, arguing that cheap imports threatened local jobs and
investment.The government responded by raising taxes and setting quotas
As a result, local car production is rising again, up 20 percent in April 2025.This story matters because it shows how Brazil is trying to
protect its own industry while facing strong competition from China.The new taxes make electric cars less affordable for many people, but
they also push companies to invest in making cars in Brazil.The outcome will affect jobs, prices, and how quickly Brazil can switch to
All figures come from official government and industry sources.
