Brazil Government Takes On Reducing Electric Vehicles Tax for Burgeoning Sales in the Long Run

The government of Brazil has taken immense efforts in reducing the tax on mass-produced EVs (electric vehicles) from 25% to 18% in order to increase the sales and usage of electric vehicles, e-bikes as well as other hybrid and electric vehicles. The national government of Brazil is expecting a significant surge in the sales of electric vehicles, thereby improving a country’s electric urban mobility that witnessed only 1,472 electric vehicle unit sales in the 6 initial months of 2018. At present, the most affordable electric vehicle in the Brazil automobile market is US$30,300.

According to CPFL Energia Group’s Strategy and Innovation Manager, Danilo Leite, Brazil’s automobile market will take responsibility of stabilizing the prices but government initiative in reducing the tax on electric vehicles is the need of the hour. This in turn will help the country in stimulating the required infrastructure for circulating and regulating energy planning. Further, Leite is of the point of view that Brazil can improve the figures comparing to the scenario of France where in 2010, it had only 26 electric vehicle charging points and in 5years time span, the number had increased by 10,000.

E-Bikes to Gain Traction in Brazil’s Electric Vehicles Market

A research firm has forecasted that growth of the electric vehicles market has been increasing at a gradual pace as well as are is witnessing shift towards municipality fleets. In Brazil, Chinese firm has two factories, located in Campinas and Manaus, respectively. Batteries have been manufactured in Manaus and Brazil’s first EV was manufactured in Campinas. E-bikes have been gaining significant traction amongst the customers in Brazil, which in turn is stimulating the growth of sale and rental system of electric bikes in the country.

Adalberto Maluf, BYD’s director of New Business, Sustainability and Marketing, had mentioned that they are holding a significant position in Brasilia as well as four other cities that are medium-sized, producing electric compactors and garbage trucks. In the São José dos Campos, interior of São Paulo is observing 100% fleet of Municipal Guard utilizing electric cars that have approximately 400Km range.

Institute for Transportation and Development Policy’s Executive Director, Clarisse Cunha Linke, is of the point of view that significant changes at policy level is a must as she witnesses the current scenario as cites being made for cars and not for the population. Motorization rates have been tripled within the past decade. Therefore, inverting the pyramid of public policies as well as investments giving priority to the public transports, thereby developing infrastructure for mobility’s such as e-bikes.

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