Duty Hike in Cars Fuelling Brazilian Domestic Production

The Brazilian Government has lifted the industrial products tax on carmakers by 30% to boost the in-house production of vehicles, says RNCOS.

NOIDA, India (prHWY.com) April 30, 2012 - According to the latest report by RNCOS, "Brazil Automobile Forecast to 2014", the country's imports grew by around 35% in volume terms in 2010 compared to the previous year. Automobile industry in Brazil has emerged as one of the most attractive sectors to bank on. It is in fact, one of the largest automobile-producing countries in the world, and its production level knew no bounds even during the global economic slowdown, thus making it more attractive for the manufacturers.

Brazil became the major importer of automobiles in 2009 and its imports have been growing continuously due to high domestic demand for imported vehicles. Especially, with the Brazilian currency appreciation, the imports of luxury cars and LCVs were on a rise. Argentina had the maximum share in Brazilian automobile imports while South Korea exported the second-largest number of automobiles to Brazil in 2010. Brazil imports gasoline and diesel-powered luxury automobiles from different regions. Regionally, South America and Asia were the major exporting regions to Brazil, followed by North America and Europe.

Thus in order to accelerate domestic automobile production and to cope with the growing demand, the Brazilian Government has raised taxes on cars with a high content of imported components to protect jobs following a surge in shipments from China and elsewhere. The government has lifted the industrial products tax on carmakers by 30 percentage points for those who source 65% of their parts from outside the Mercosur trade bloc or Mexico. This will help in increasing the in-house production of vehicles in the country.

Our report also sheds light on import and exports of various types of vehicles. Our comprehensive research covers various aspects and segments of the Brazilian automobile industry, including auto components and tyre industry. In-depth profiling of the major players present in the industry along with their strengths and weaknesses is also covered here. Overall, it aims at depicting a true and an unbiased picture of the Brazilian automobile market to clients.

For FREE SAMPLE of this report visit: http://www.rncos.com/Report/IM377.htm

Some of our Related Reports are:

- India Commercial Vehicle Market Analysis (http://www.rncos.com/Report/IM259.htm)
- China Automobile Sector Analysis (http://www.rncos.com/Report/IM372.htm)
- Two-wheeler Market in India (http://www.rncos.com/Report/IM364.htm)
- Used Car Market in India (http://www.rncos.com/Report/IM360.htm)
- India CNG Vehicle Market Analysis (http://www.rncos.com/Report/IM359.htm)

Check Related REPORTS on: http://www.rncos.com/Transportation.htm

About RNCOS

RNCOS specializes in Industry intelligence and creative solutions for contemporary business segments. Our professionals analyze the industry and its various components, with a comprehensive study of the changing market behavior. Our accuracy and data precision proves beneficial in terms of pricing and time management that assist the intending consultants in meeting their objectives in a cost-effective and timely manner.

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Tag Words: brazil tyre industry

Categories: Automotive

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