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

Article by Christian Andrei, 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

Nearly a decade after Opel and sister brand Vauxhall introduced the Insignia large family car, these companies are now getting ready to unveil the second generation of this offering from...
by - December 7, 2016
After we caught a glimpse of the revamped Amarok, VW Australia once again wants to give its ute a sinister look inspired by the Mad Max movie franchise. The “Korama”...
by - December 7, 2016
Customers in the European market are known for leaning towards style and with this in mind, Nissan has revealed the special LEAF Black Edition. While the production run of this...
by - December 7, 2016
When Volkswagen unveiled the VW Atlas, it declared that this SUV is being developed for the United States and is set to arrive as a 2018 model. It also unveiled...
by - December 7, 2016
Did you miss the opportunity to get a brand new Dodge Viper? Well, here’s something you don’t want to miss. Dodge has announced a “final call” for orders for its...
by - December 6, 2016
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