BRAZIL/SOUTH AMERICA REPORT
Starting in 2025, vehicle exports from Brazil to Colombia will once again be taxed at a 54% rate. The tax exemption agreement, in place since 2017, will not be renewed. According to the Colombian government, this decision is designed to protect its local automotive industry, currently dominated by Renault. This is a setback for Brazilian manufacturers, who exported fewer vehicles in 2024, with a 30% drop compared to the previous year.
Source: Automotive Business Read The Article
PSR Analysis: This means an important reduction of exports from Brazil, affecting some OEM exports severely; for others, there will be no impact. These production impacts are already deployed in the forecast in OE Link database.
Fabio Ferraresi is Director, Business Development-South America, for Power Systems Research
