Ford says it will fully pass on to all the brand’s vehicles in Brazil the 25% reduction in the IPI (Tax on Industrialized Products) determined by the government last week.
The company’s gesture is expected from other automakers and also from other sectors, which used the argument of inflation relief to pressure the government to give the benefit. But the industry, in general, has complained about the difficulty of recovering in price the increase in commodity costs.
It is not yet clear what will be the capacity and willingness of the different sectors to commit to the transfer of the cut.
The reduction is an old demand from businessmen and was requested by the so-called Industry Coalition in several meetings with the Minister of Economy, Paulo Guedes, in recent months. The coalition includes representatives from more than ten sectors, such as steel, footwear, textiles, plastics and others.
In the automotive sector, the expectation is that the reflection of the IPI cut will have a greater impact on more expensive models, while in the entry-level segment, discounts should generally be below R$ 1,000, according to analysts in the area.
Joana Cunha with Andressa Motter and Ana Paula Branco
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