Brazil EV Import Tariffs: Bright Consulting Flags Price Impact

On January 21, reports indicated that Brazil EV import tariffs on electric and hybrid vehicles will rise from 30% to 35% starting in July, a move expected to increase the prices of imported models by up to 8%. The tariff revision is likely to influence pricing strategies as automakers reassess cost structures in a rapidly evolving market.
According to an outlook presented by Bright Consulting, Brazil’s automotive landscape is entering a phase of intensified competition and structural transformation. Electrification, combined with rising technological expectations, is reshaping how vehicles are developed, positioned, and priced.
Electrification Redefines Core Automotive Strategy
The analysis underlined that electrification is no longer a niche offering. Instead, it has become a fundamental component of automotive business infrastructure, directly affecting product planning, investment priorities, and overall vehicle costs. Manufacturers are increasingly required to align their portfolios with electrified powertrains to remain competitive.
Local Assembly May Cushion Tariff Impact

• Not all players will be affected equally by the higher Brazil EV import tariffs.

Vehicles assembled locally under CKD or SKD schemes, currently adopted by several Chinese automakers, could experience a more limited cost impact. This is especially true if manufacturers expand the use of locally sourced auto components to offset higher import duties.
Advanced Technology Shapes Buyer Decisions

• The presentation also highlighted a clear shift in consumer expectations.

Buyers are increasingly prioritizing advanced vehicle technology, particularly driver assistance systems, when making purchase decisions. These features are rapidly becoming a baseline requirement and are redefining the minimum technological standard for future vehicle launches in Brazil.
As tariffs rise and technology expectations intensify, automakers operating in Brazil will need to balance pricing, localization, and innovation strategies to stay competitive in a market being reshaped by electrification and smarter vehicles.