Brazil Approves New Incentives for Local Carmakers

Brazil has approved a new package of tax breaks and other incentives for domestic carmakers to promote safer and more efficient vehicles in the country.

The 15-year legislative program, called Rota 2030, will provide tax credits worth a combined 3.7 billion reais ($558 million) over the next two years, Automotive News reports.

The plan also lowers taxes on products used to make dual-fuel engines that burn gasoline and ethanol. It further renews incentives to build and/or operate vehicle assembly plants in poverty-stricken northeastern Brazil, where Ford and Fiat Chrysler Automobiles have facilities.

Rota 2030 replaces Innova Auto, an array of tax breaks that ended at the beginning of 2018.