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* Brazil: Stuns Chinese OEMs with IPI tax increase
In September, the Brazilian government announced an increase of 30% over the country's IPI industrial product tax for vehicles
Sao Paulo,SP,Brazil -Setec Consulting Group/Automotive World. by Jeannette Galbinski -October 05, 2011: -- The relatively new trend of Chinese OEMs building vehicles outside China began in the mid-2000s, and is now a global reality... In 2010, during the 26th Sao Paulo International Automobile Trade Show, the Asian industry was represented by the greatest number of vehicle manufacturers to date. The stars of the show were China's Jac Motors, Haima and Chery, all of which announced new models to be commercialised in Brazil... The strategy appeared successful, and since the economic crisis in 2009, the Brazilian government has announced several measures to encourage both the purchasing of automotive products and vehicles... The Chinese car industry got the message and, thanks to the Brazilian market's positive response, the construction of three plants was announced: Jac Motors confirmed plans to invest almost Real 1bn (approx US$530m); Lifan announced a Real 160m investment (US$85m); and Changan (Chana) announced an investment of Real 300m. In addition, five other Chinese vehicle manufacturers have plans to produce vehicles in the country: Geely, Great Wall, BYD, Foton and Sinotruck. Chery’s plant is already under construction and its estimated investment will be Real 700m... However, in the last few days, the scenario changed drastically. In September, the Brazilian government announced an increase of 30% over the country's IPI industrial product tax for vehicles that have less than 65% local content and are manufactured outside the South American Mercosur trade region or Mexico. The government said the measure was aimed at "protecting the local industry"...
Labels: trucks markets worldwide
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