BMW posts a 30% drop in first-quarter sales in Brazil due to a tax rise for imported cars

Article by Christian A., on April 16, 2012

The first quarter was not a good period in terms of sales in Brazil for Bmw as the country increased the tax for imported cars. Apparently, in order to protect jobs and automakers with factories in Brazil the government increased the industrial products tax on vehicles with less than 65 percent of their parts produced in the country.

As a result, car sales fell 30 percent. Still, the bad news continue because manufacturers like Bmw increased prices of their cars by 15.9 percent, while the other 14.1 percent were absorbed by Bmw and dealerships. According to Autonews, Brazil wants to protect carmakers based in the country. For those who don’t know, the car market is dominated by Volkswagen, Fiat and General Motors, while Bmw has a small market share.

Still, the Bavarian manufacturer sees Brazil as a country with very big potential, just like China. In the first quarter, Bmw sold 1,888 units in Brazil, down from 2,137 units a year earlier. Moreover, Bmw also put on hold plans to build a factory in Brazil because of the IPI increase. Finance Minister Guido Mantega said that the IPI increase aims to force car manufacturers to build key components in Brazil.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 2017
Having a 400 hp and 470 lb-ft of torque is a tremendous advantage. Yet Ford hasn’t formally announced the numbers regarding its latest Ford Expedition. The current SUV as we...
by - February 17, 2017
Aston Martin and Red Bull’s AM-RB 001 hypercar project is moving along quickly. This time, the project partners have already commissioned a number of technical partners that would help in...
by - February 17, 2017
This is what happens when a guy thinks fast forward into the future. Never mind if autonomous driving is just lurking around the corner. Volkswagen, Chevrolet, Audi and Ford are...
by - February 17, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries