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Vehicle sales in Brazil will double in 15 years, says minister
Study commissioned by the government shows that will be sold annually at the|
Brazil, 6.8 million cars, motorcycles, trucks and tractors.
The number of vehicles sold annually in the country will double by 2025. The forecast is the minister of
Development, Industry and Foreign Trade Miguel Jorge.
The minister said a study commissioned by the federal government shows that in 15 years, will be marketed,
annually in Brazil, 6.8 million cars, motorcycles, trucks and tractors. Estimates of the National Federation of
Vehicle Distribution (Fenabrave) indicate that this year will be 3.4 million.
Miguel Jorge said that the demands of domestic and foreign vehicles will boost sales growth.
He said Brazil and the countries that comprise the group of the BRIC countries (Russia, India, China, and Brazil), the fleet is
composed of more vintage cars than in developed countries, and the rate of cars per capita is lower.
"About 60% of Brazil's fleet are less than ten years old. In Japan they are 83%, "said Jorge.
"The BRIC countries also have older fleets and therefore are capable of pulling the demand for cars."
The minister said, however, that reducing the tax burden levied on vehicles is vital for
Brazilian automakers can compete with this demand by factories in other countries. He said that in the country until
30% of the price of a car are made up of taxes, twice the world average.
"A vehicle in Brazil can cost twice what it costs in India, with a heavy burden of taxes in this
difference, "said Jorge. Still, according to him, the number of vehicle sales in the country could be,
approximately 50% higher if the taxes were lower and interest on loans as well.
"We would increase sales by about 1.8 million units if taxes were reduced to something like
16% interest and funding fell from 24% to 16% per annum. "