Discounts on car sales reach R$ 400 million

Government-sponsored discounts range from R$2,000 to R$8,000, but, according to the MDIC, many companies have applied higher margins on their own. Launched two weeks ago, the program allows the credits requested by automakers to be converted into consumer discounts on the purchase of cars with a market value of up to R$ 120,000.

With regard to subsidies for heavy and passenger vehicles, the amounts implemented did not change in the last 24 hours. Tax credits for the sale of trucks add up to R$100 million, 14% of the R$700 million available. For the sale of buses, R$ 140 million in credit were granted, out of a total of R$ 300 million available.

The data consists of a panel data released by MDIC with program updates. The tool allows for the monitoring of volumes of funds released and the list of cars serviced.

Extension

On Tuesday (20), the MDIC extended the program’s exclusivity for 15 days car sales with tax credits for individuals. Only after this period, legal entities, such as car rental companies and other types of companies, will be able to buy cars at a discount.

Regarding the program for buses and trucks, there was no postponement. Companies can buy these vehicles at a discount starting this Wednesday.

So far, the program subsidizes the discounted purchase of 266 versions of 32 car models from nine different automakers: Renault, Volks, Toyota, Hyundai, Nissan, Honda, GM, Fiat and Peugeot.

The new version of the list can be accessed at MDIC page.

Truck manufacturers that showed interest were Volkswagen Truck, Mercedes-Benz, Scania, Fiat Chrysler, Peugeot Citroen, Volvo, Ford, Iveco, Mercedes-Benz Cars & Vans and Daf Caminhões.

In the case of buses, nine automakers joined the program: Mercedes-Benz, Scania, Fiat Chrysler, Mercedes-Benz Cars & Vans, Comil, Ciferal, Marcopolo, Volare and Iveco.

These companies asked for discounts on taxes totaling R$140 million, equivalent to 46.7% of the ceiling of R$300 million made available to bus assemblers.

tax credits

The fleet renewal program will be financed through tax credits, discounts granted by the government to manufacturers in the payment of future taxes, in a total of R$ 1.5 billion. In exchange, the automotive industry undertook to pass the difference on to the consumer.

It is planned to use R$ 700 million in tax credits for the sale of trucks, R$ 500 million for cars and R$ 300 million for vans and buses. The program has a term of four months, but may expire sooner, as soon as the tax credits are exhausted.

To compensate for the loss of revenue, the government intends to partially reverse the exemption on diesel that would be in effect until the end of the year. Of the R$ 0.35 of the Social Integration Program (PIS) and Contribution for the Financing of Social Security (Cofins) currently zeroed, R$ 0.11 will be re-encumbered in September, after 90 days determined by the Constitution for increasing contributions federal.