Brazil renews zero‑tariff import quota for electric vehicles

The Committee for Executive Management (Gecex) of Brazil’s Chamber of Foreign Trade (Camex) approved a six‑month renewal of a zero‑tariff import quota for partially assembled electric and hybrid vehicles (CKD and SKD kits) worth up to US$ 463 million, starting 1 July 2026. At the same time, the body kept the schedule to raise import duties on fully built electric and hybrid cars, with SKD kits moving to a 35 % tariff from July 2026 and CKD kits remaining at 14 % until the end of 2026 before also rising to 35 % in January 2027. The exemption applies only to kits that are assembled locally and does not cover completely built (CBU) vehicles. The government says the measure supports fleet renewal, innovation and the decarbonisation of Brazil’s automotive sector while helping manufacturers that are establishing production in the country, such as BYD and Geely. Industry reaction is mixed: the Ministry of Development, Industry and Trade stated the decision “was taken to favour the consumer and the market,” whereas the National Association of Vehicle Manufacturers (Anfavea) warned that the zero‑tariff quota could hurt domestic manufacturers and auto‑parts suppliers. Analysts note the quota may lead to limited promotional discounts for locally assembled models but is unlikely to cause a broad price drop for fully imported electric cars.