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Asian Automobile Manufacturers Strategies in Brazil: impact of the New Automotive Policy (INOVAR-AUTO)

New Initiatives, Trends and Dilemas for the Brazilian Automotive Industry: The case of Inovar Auto and its impacts on Electro Mobility in Brazil

Marx, R., & de Mello A. M. (2013).  New Initiatives, Trends and Dilemas for the Brazilian Automotive Industry: The case of Inovar Auto and its impacts on Electro Mobility in Brazil. Gerpisa colloquium.

New Initiatives, Trends and Dilemmas for the Brazilian Automotive Industry: The case of Inovar Auto and its impacts on Electro Mobility in Brazil

by Roberto Marx e Adriana Marotti de Mello

In the mid 2012, the Brazilian government established the bases of a new industrial policy for the automotive sector. Under the acronym Inovar Auto, a much more pompous name unfolds: Program for Fostering Technological Innovation and Densification of the Automotive Productive Chain.

This program main aspect is a forecast discount of up to 30 percentage points in the IPI (Portuguese acronym for Tax on Industrialized Products) for automotive vehicles produced and/or sold in Brazil. To have the right to the discount, the interested organizations have to meet requirements such as:

• Carrying out research and development in Brazil
• Making disbursements for engineering, basic industrial technology and suppliers capacity building
• Joining the vehicular tagging program
• Having investment projects approved to settle in Brazil (for those that do not yet manufacture products in Brazil) read more

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