Brazil ranks as a top importer of Chinese EVs, for now.

In a surprising turn of events, Brazil has surpassed Belgium to become the largest buyer of Chinese electric vehicles (EVs) in April. The country imported a total of 40,163 units of fully electric and plug-in hybrid cars from China, marking a 13-fold increase compared to the previous year. This milestone has solidified Brazil’s position as the top importer of Chinese EVs for the second month in a row.

The shift in import trends can be attributed to several factors, including the gradual reinstatement of import taxes on foreign EVs. The phasing-out of incentives for imports, in place since 2015, is another key driver. These measures aim to finance the government’s new program, Mover, which focuses on producing safer and eco-friendly vehicles and includes significant tax incentives over the next five years.

Despite the tax reinstatement, brands still have access to zero tax quotas for importing electric cars, leading to a surge in import numbers in recent months. This strategy allows companies to maximize their imports within the quota limits before facing higher tax rates, ensuring a cost-effective approach to maintaining a competitive edge in the market.