Brazil extends zero import tax on electric vehicles, GWM to build new EV SUV factory

The Brazilian federal government has extended for six months the exemption of the import duty on electric and hybrid vehicles, both in completely knocked‑down (CKD) and semi‑knocked‑down (SKD) forms, keeping the quota at zero to help lower consumer prices and encourage electric mobility.

At the same time, the scheduled increase of the import duty to 35% by July remains unchanged. Minister Márcio Elias Rosa affirmed, “Há três anos começamos um cronograma de elevação do imposto de importação que vai chegar a 35% para todos os veículos.” The zero‑duty quota will continue to serve manufacturers that are establishing production in Brazil, while higher rates will apply to imports above the quota.

Chinese automaker GWM announced the construction of its second Brazilian plant in Aracruz, Espírito Santo. The new facility, part of a R$10 billion investment plan, will produce the ORA 5 fully electric SUV along with hybrid and conventional models, aiming to supply Brazil and neighboring markets. The project is expected to generate about 9,000 direct jobs.