Industry Trend Analysis - What Will Brazil's New Autos Industry Policy Look Like? - MAR 2017

BMI View: The Brazilian automotive industry will experience a shift in industrial policy over 2017. We believe the new policy will offer lower tax cuts for domestic vehicle production than previously offered, provide more support for fuel efficient components and vehicles, including electric vehicles, and provide stronger support for domestic component producers.

In 2017, the industrial policy that has shaped how carmakers and suppliers invest in Brazil and what vehicles they market, a policy known as Inovar-Auto, is due to expire. The industry and Brazilian government must now offer a new blueprint for the next phase of industrial strategy, which we believe will prove critical in shaping the evolution of the industry after 2017. In this piece of analysis, we summarise some key aspects of the current Inovar-Auto program and outline what shape the new industrial strategy is likely to take.

Inovar Auto : The Policy Shaping Brazil's Industry Today

Possible Respite Ahead For Weakened Importers
Brazil - Sales Of Imported Vehicles (rolling years) & Market Share Of Imports, %

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