Nova Realidade Covid-19 após 1 ano
■ Opportunities and Challenges
KPMG
Opportunities
Rota 2030:
At the end of 2018, the federal government approved a new policy to stimulate the sector,
called Route 2030. This program provides tax benefits not only to vehicle assemblers
(OEMs), but also to suppliers of parts and systems. The program lasts for 15 years. The
granting of tax benefits is strongly based on investments to be made in innovation,
research and development of new products, vehicle safety and energy efficiency.
Tax benefits are strongly associated with corporate income tax, which, in practical terms,
means that the benefits are effectively exploited if companies are in a profitable position.
Challenges
Production: Lack of basic inputs to feed the industry's production process. Demand is
repressed, with pressure on production. The high exchange rate in the import of parts is
accelerating the movement of the nationalization index of parts and systems;
Sales: Used cars with better performance than new cars, but it is not linked to the lack of
new cars in the market, but to the low price. Acceleration of subscription vehicle offers,
as a way to reduce the cost perception of the new car;
Exports: The lack of a more robust and diversified export strategy continues to make it
difficult to find alternatives, as local products are competitive in several target markets,
despite a more favorable exchange rate for exports.
Source: KPMG - Nova realidade Covid-19 após 1 ano
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