Brazil grants new zero‑tariff import quotas for CKD and SKD electric vehicle kits

From July, Brazil’s Gecex committee approved a six‑month, $463 million (R$2.4 billion) quota that allows zero‑tariff imports of completely knocked‑down (CKD) and semi‑knocked‑down (SKD) kits for electric vehicles. The quota mirrors the one granted from August last year to January this year. Tariffs will rise to 35% for SKD kits in July and for CKD kits in January, while the CKD rate stays at 14% until the end of the year. The move aligns with BYD’s interests, as the Chinese automaker cites its R$3 billion investment and 5,000 workers at the Camaçari plant in Bahia.

The industry association ANFAVEA criticized the decision, saying it was made without consultation and undermines predictability for manufacturers, threatening to take legal action. ANFAVEA warned the change could jeopardise up to R$140 billion in pledged investments and raise concerns about de‑industrialisation and job losses. BYD’s vice‑president Alexandre Baldy denied any new request for additional quotas, noting the company is complying with previously agreed terms.