New Initiatives, Trends and Dilemas for the Brazilian Automotive Industry: The case of Inovar Auto and its impacts on Electro Mobility in Brazil

Type de publication:

Conference Paper

Source:

Gerpisa colloquium, Paris (2013)

Résumé:

In the mid 2012, the Brazilian government established the bases of a new industrial policy for the automotive sector. Under the acronym Inovar Auto, a much more pompous name unfolds: Program for Fostering Technological Innovation and Densification of the Automotive Productive Chain (Programa de Incentivo à Inovação Tecnológica e Adensamento da Cadeia Produtiva de Veículos Automotores).

This program main aspect is a forecast discount of up to 30 percentage points in the IPI (Portuguese acronym for Tax on Industrialized Products) for automotive vehicles produced and/or sold in Brazil. To have the right to the discount, the interested organizations have to meet requirements such as:

• Carrying out research and development in Brazil
• Making disbursements for engineering, basic industrial technology and suppliers capacity building
• Joining the vehicular tagging program
• Having investment projects approved to settle in Brazil (for those that do not yet manufacture products in Brazil)

The items above have maximum or minimum values and several rules to make their application viable. The aim is to increase competitiveness and added value all along the production chain, be it in engineering or in local production; concurrently, the modernization of the products traded domestically is sought, matching them to those traded in central countries.

Our paper intends to detail and to analyze this program, highlighting its weaknesses and strengths. With this, a comparison is to be made between previous initiatives and the one now starting. We also intend to analyze if and how the development of technologies associated to the electric car will effectively be fostered by the Inovar Auto, given that it is a technology pointing towards the future of the industry and does not yet count on leading technologies in world terms which, in theory, may pave the way for inserting Brazil in this market.

As the empirical foundation for this study, a set of interviews and prospective studies will be used, and are already being conducted by the authors with experts from both the industry and from the local academy, government representatives as well as with consultants and entrepreneurs who have alternative views regarding the future of the Brazilian automotive industry.

Texte complet:

New Initiatives, Trends and Dilemmas for the Brazilian Automotive Industry: The case of Inovar Auto and its impacts on Electro Mobility in Brazil

by Roberto Marx e Adriana Marotti de Mello

In the mid 2012, the Brazilian government established the bases of a new industrial policy for the automotive sector. Under the acronym Inovar Auto, a much more pompous name unfolds: Program for Fostering Technological Innovation and Densification of the Automotive Productive Chain.

This program main aspect is a forecast discount of up to 30 percentage points in the IPI (Portuguese acronym for Tax on Industrialized Products) for automotive vehicles produced and/or sold in Brazil. To have the right to the discount, the interested organizations have to meet requirements such as:

• Carrying out research and development in Brazil
• Making disbursements for engineering, basic industrial technology and suppliers capacity building
• Joining the vehicular tagging program
• Having investment projects approved to settle in Brazil (for those that do not yet manufacture products in Brazil)

The items above have maximum or minimum values and several rules to make their application viable. The aim is to increase competitiveness and added value all along the production chain, be it in engineering or in local production; concurrently, the modernization of the products traded domestically is sought, matching them to those traded in central countries.

Our paper intends to detail and to analyze this program, highlighting its weaknesses and strengths. With this, a comparison is to be made between previous initiatives and the one now starting. We also intend to analyze if and how the development of technologies associated to the electric car will effectively be fostered by the Inovar Auto, given that it is a technology pointing towards the future of the industry and does not yet count on leading technologies in world terms which, in theory, may pave the way for inserting Brazil in this market.

As the empirical foundation for this study, a set of interviews and prospective studies will be used, and are already being conducted by the authors with experts from both the industry and from the local academy, government representatives as well as with consultants and entrepreneurs who have alternative views regarding the future of the Brazilian automotive industry.

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