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Four cars made in Brazil that cost less in other countries

By Paula Gama

When we talk about an imported product, the first idea that comes to mind is that it costs less in the country of origin.

As nothing is simple in Brazil, this thought does not apply to cars.

This is because, in addition to the cost of production, transportation, and profit margin, the tax burden affects the final price of cars.

The taxes make Brazilians pay more for a vehicle manufactured locally than those living in the countries that import them (Photo internet reproduction)

In practice, the taxes make Brazilians pay more for a vehicle manufactured locally than those living in the countries that import them.

According to data from Anfavea, the automakers association that produces cars in Brazil, here, the tax represents between 40% and 50% of the value of a car, depending on its technical characteristics.

The average among developed countries is 20%.

Adding this condition to our free trade agreement with some Latin American countries, Brazilian vehicles cost less in other markets.

While in Brazil, taxes such as ICMS, PIS/Cofins, and IPI are levied on vehicles, in Mexico, there is only a single tax, the VAT, of 16%.

To show the distortion, we selected four models manufactured in Brazilian plants that, even with the cost of transportation, cost less in other nations.

RENAULT KWID

Renault Kwid Intense 2023 (Photo internet reproduction)

Manufactured in São José dos Pinhais, Paraná, the Kwid travels thousands of kilometers to reach Mexico.

Even so, the cheapest version in Mexico costs Mex$230,101, equivalent to R$63,900 (US$12,807).

It is already equipped with a rearview camera and a multimedia center.

The car costs R$71,200 in Brazil.

In Mexico, the engine is gasoline only, not flex-fuel (gasoline or alcohol), as in the Brazilian version.

FIAT STRADA

In Colombia, the Strada is called RAM 700 (Photo internet reproduction)

Renamed as Ram 700 in Colombia, the cheapest version of the Strada, with a single cabin, costs Col$71,990,000, equivalent to R$79,100 (US$15,854).

Like the Kwid, it is marketed with a gasoline engine, while in Brazil, it is flex-fuel.

Another difference is that the Colombian one has a radio with MP3 and USB. The Brazilian one only has wiring and a harness.

In Brazil, the cheapest version of the pickup costs R$97,990.

TOYOTA COROLLA CROSS

Toyota Corolla Cross (Photo internet reproduction)

The Brazilian Corolla Cross is one of the most exported Toyota cars in the world.

In Chile, a country with a much more open market than Brazil, the cheapest version, the SEG 2.0, costs $21,490,000 (R$133,238) (US$26,705).

It is equipped with a 177 hp 2.0 gasoline engine and CVT transmission.

In Brazil, the starting price of the vehicle is R$159,890.

VOLKSWAGEN T-CROSS

VW T-Cross Comfortline (Photo internet reproduction)

The VW SUV is sold in Colombia in more versions than in Brazil, including manual options, which start at Col$89,990,000, equivalent to R$98,989 (US$19,840)

In Brazil, the entry version is automatic and more complete, starting at R$136,990.

But by comparing two equivalent versions, called Comfortline, in both markets, it is possible to have a better notion of the difference.

It starts at R$145.189 in Colombia and R$152.990 in Brazilian stores.

With information from UOL

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