Hello, this is Tokyo Consulting Firm Brazil’s Blog.
We are posting about “Rota2030: The new program for the Automotive Industries in Brazil” in this time.
This month, the Medida Provisória n. 843/18 was approved, regulated by Decree n. 9,557/18, called “Rota2030”, that is, it is an automotive regime where it was creating a new tax regime for Brazilian automakers, which in return should invest in research and development of products and technology.
The original text of the amendment had its creation through all the presidents of the automakers in the country and presented to the President Michel Temer, with the intention of defining the rules of manufacture and its commercialization, in addition to covering how much companies should invest, how much the models will be advanced, economic, insurance and, more or less, how much they will cost. Perhaps in the voting phase in the Congress, its content was modified with additions of some amendments of deputies of the North, Northeast and Central-West regions, without obtaining agreement the other regions. These agreements include incentives to the factories of Pernambuco, Bahia and Goiás, in order to offset the cost of logistics, since they operate far from vehicle purchasing centers and with a smaller number of suppliers.
The main points that this amendment presents are the new goals of energy efficiency; how many security items will become mandatory; which technologies, on a mandatory basis, should be developed in the country. The program will be divided into three stages, each lasting 5 years, the first one already in operation is the five-year period from 2018 to 2022.
What is believed is that with the definition of the Rota2030 program, local industries can return to an environment of stability and predictability in the development of new products. In addition, of course, the financial part, with tax incentives in order to meet targets and invest in research and development – something essential today with such competition and a market in recovery from financial crisis.
Katushi Hamasaki
