IPI reduction: why the discount is not passed to all automakers – 03/09/2022

One of the issues that grabbed the most attention in the last week in the auto market was the lowering of the IPI (Industrial Products Tax) announced by the federal government. by decree President Jair Bolsonaro (PL).

After the decree came into force and the rules were put in place that reduced the IPI by 18.5% for cars (and up to 25% for white goods), the question arose about how the transfer of the discount by automakers would occur.

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The decree is invalid, that is, until it is repealed, it preserves the reduction, nor does it provide for or obligate automakers to make a full transfer of the IPI reduction to the final consumer price.

Anfavea president, Luis Carlos Moraes, said in an interview with UOL . cars That the association does not have the power to make the members fully pass the government discount.

“The spirit of lowering the IPI is to lower the final price of the car and help the market move, but because of inflation, some brands are offsetting that conversion,” the CEO says.

In practice, this means that some avoided further price increases with the arrival of the IPI reduction, but were unable to lower values ​​- or make even lower cuts.

It’s worth remembering that the higher-priced cars on the list end up offering a bigger price cut, in the equation, since their values ​​are also higher.

When referring to the report, most of the brands installed in Brazil, both as aggregators and as importers, answered about the path taken in terms of IPI reduction.

Ford, Honda, Kia, Mercedes-Benz, Nissan, Renault, Toyota, Volkswagen and Volvo have confirmed that they are passing the IPI reduction in full to the final price of their cars, according to the tables by engine, which have different prices.

Nissan and Volvo have also indicated that even cars that have already been invoiced, that is, those in yard sale, will be subject to an IPI rule review. According to Anfavea, this is easy to do, does not create problems and is completely within the law.

The Stellantis group brands (Citroën, Dodge, Fiat, Jeep, Peugeot and Ram) have, in unison, given an answer that is in line with what Moraes said about avoiding increases with downgrade.

“The prices of raw materials, inputs and components are rising all over the world, in an inflationary process that affects many industrial sectors. This phenomenon is clearly visible in Brazil, causing successive increases in production costs and, consequently, in the prices of industrial products. .

Sensitive to this global reality, the government has rightly lowered the IPI tax rate on many industrial products. This measure will allow the industry to partially and temporarily compensate for the rise in production costs without the need to raise product prices immediately.”

General Motors chose to send examples of only three models from the brand and lower their price. Onix 1.0, entry version, depreciated by R$800 from R$74,620 to R$73,820 (1.07%).

cruise rs, One copy of the middle aperturetook a reduction of R$2,220 from R$154,500 to R$152,280 (a decrease of 1.43%) and the S10 Z71, the adventure version of the pickup truck, rose from R$276,190 to R$271,910, representing a decrease Its R$4.280 or 1.54%.

At HPE, the group responsible for the Mitsubishi Motors and Suzuki Veículos brands, there were also cuts, but not by percentage strength. The most complete version of the L200 Triton Sport pickup, the HPE-S, went from R$301,990 to R$298,990, say a $3,000 or 0.99% discount.

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