Brazilian trade panel brings forward tariff increase for CKD and SKD EVs

SAO PAULO (Brazil): The Brazilian trade panel known as Gecex-Camex decided on Wednesday to bring forward a tariff increase schedule for disassembled electric and hybrid vehicles imports, it said in a statement.

Fully or partially disassembled vehicles, known as CKDs and SKDs, will be subject to a 35% import tax from January 2027, and no longer in July 2028, Gecex-Camex said.

They are currently charged a 14% levy, according to the government.

On the other hand, Gecex-Camex approved an additional free-tariff quota, worth US$463 million (RM1.97bil) for CKD and SKD imports, valid for six months.

China's BYD had asked earlier this year for a temporary tariff reduction on CKDs and SKDs, which generated backlash from carmakers including Toyota, Volkswagen , General Motors and Stellantis.

In a letter to President Luiz Inacio Lula da Silva earlier this month, the four automakers said the move could put investments in the country at risk.

BYD criticised the four carmakers in a statement before the panel decision, comparing them to "dinosaurs" who "just saw a meteor in the sky".