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Brazil car market Cash injection from the state

From Tina Rumpelt | Translated by AI 7 min Reading Time

Brazil's car market has not yet returned to pre-pandemic levels. A "green" support program is now intended to strengthen the automotive industry. The international OEMs are jumping on board. It won't be cheap.

Volkswagen do Brasil aims to grow by 40 percent by 2027 with a product offensive.(Image: Volkswagen AG)
Volkswagen do Brasil aims to grow by 40 percent by 2027 with a product offensive.
(Image: Volkswagen AG)

Brazil is enticing with a big cash injection: the government wants to strengthen the local automotive industry with the equivalent of 3.8 billion US dollars. "Mover", short for "Mobilidade Verde e Inovação", is the name of the program adopted at the end of 2023 and launched in June 2024. "Mover promotes investment in new technologies through various tax incentives and increases the decarbonization requirements for Brazilian vehicle production," reports GTAI Germany Trade & Invest in a recent country report. It also provides incentives for local production and employment.

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