Automotive companies in Brazil: emissions target with the Rota project 

Dec 12, 2018

Il Sole 24 ore

Mr Graziano Messana talks about the “Project Rota” that offers incentives for research and development costs by automotive companies in Brazil. Also, the project “Brazil Auto Parts – Investment in Trusted Partners”, which promotes partnerships between companies in the parts sector, Brazilian and foreign, through investment projects in Brazil.

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Incentives for research and development expenses.

Emissions target with the Rota project.

Agribusiness, economic recovery and incentives for energy efficiency those are the three factors driving innovation in Brazil’s automotive sector are the questions. Graziano Messana, an economist and entrepreneur, founded GM Venture in Brazil, he knows the country and its economy well. “The cornerstone of the automotive sector is agribusiness, which does not suffer real recessions and – explains Messana – is the main component in GDP growth.” Agrobusiness, translated into the automotive business, is expected to close, in 2018, with a volume of 34,000 agricultural machines sold. Good soybeans and cotton harvests drove sales. Brazil’s domestic market is also a strong point for the car sector.

The Rota (Rotate) 2030 project, which began on 8 November, provides for a clear set of rules for car manufacturers that will produce on-site over the next 15 years. And it creates demand for energy efficiency, emissions and vehicle safety solutions, offering incentives for research and development costs by car companies in Brazil (both automakers and suppliers).

Apex-Brasil, the government’s a trade and investment agency, has won the United Nations Investment Promotion 2018, award for the “Brazil Auto Parts – Investments in Trusted Partners” project. A long-standing agreement with Sindipeas, a national association of Brazilian auto parts manufacturers, to encourage mutual partnerships in the spare parts sector, both Brazilian and foreign, through investment projects in Brazil. The project contributes to the achievement of Objective 9 of the 2030 Agenda for Sustainable Development (building resilient infrastructure, promoting inclusive and sustainable industrialization, promoting innovation).

The industry is pulling, yes. And in a macro context of difficulty, it is one of the Pakistanis to show vivacity. By 2022, international automakers have announced 30 billion dollars of investment between new plants and upgrades of existing factories. Fiat will put 3.2 billion euros of investments in Latin America on the table, most of them in Brazil. The goal is the creation of 25 new models: 15 with Fiat brand, 10 Jeep and Ram.

However, the main driving force of the automotive industry remains domestic consumption, which started after the crisis. The decrease in car exports to Argentina, brought about by the recession, was not so significant as to slow growth. 2018 will close with around 2.5 million registered cars. Electric mobility is the other area in which the Brazilian government is taking action. Here too, there are incentives and government actions.

To this end, both the Ministry of Industry and Aneel, the Brazilian Electricity Regulatory Agency, have set up working groups to develop a concrete action plan. In 2018, the government published a new decree that reduces the tax on industrialized products (Ipi) for electric and hybrid vehicles from 25% to 7-20%, according to several criteria: this means the energy efficiency of vehicles.

Original article in Italian.

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