Brazil has the most expensive car in the world. Why?

The main arguments of the manufacturers to justify the high price of cars sold in Brazil are high taxes and low production scale. Another villain would be the high value of labor, but manufacturers do not reveal how much salaries - and benefits - represent the final price of the car. Much less production costs, a secret protected by law. The explanation of the manufacturers in Brazil to sell the most expensive car in the world is called Brazil cost, ie, the high tax burden plus the cost of capital, which burdens production. But the stories you see below will show that the villain is the price, yes, Profit Brazil. In no country in the world auto industry is an important factor in the GDP, the car cost so much to the consumer. The industry also blames what he calls the Third Sheet by increasing the production cost: spending on staff, who should be role of the state, but that companies end up having to take such as transportation, health care and other employee benefits. With a domestic market of one million units in 1978, argued that the factories would be impossible to produce a cheap car. It was necessary to increase the scale of production, thus, reduce the costs of suppliers and reach a final price at the level of other producing countries. Well: Brazil ended 2010 as the fifth largest producer of vehicles in the world and the fourth largest consumer market, with 3.5 million units sold in domestic market and a production of 3.638 million units. Three and a half million cars would not be sufficient volume to cheapen the product? As you will need to produce for the Brazilian consumer can buy a car at a price equivalent to that of other countries? According Cledorvino Belini, president of Anfavea, it is true that production increased, but now it is distributed in over 20 companies, so that the scale remains low. He chose a new level so that the volume can provide a reduction of the final price: five million cars. The tax burden fell The tax, the eternal villain, has declined in recent years. In 1997, the car paid 26.2 1.0% tax, the car with the engine up to 100hp collected 34.8% (gasoline) and 32.5% (alcohol). More powerful engines for the tax was 36.9% for gasoline and 34.8% alcohol. Today - with the criteria changed - the car collects 27.1 1.0%, the range of 1.0 to 2.0 30.4% paid for motor gasoline and 29.2% for alcohol engines. And in the upper range, above 2.0, the tax is 36.4% for gasoline car and 33.8% alcohol. I mean: the people's car had an increase of 0.9 percentage points in taxes, while in other tax categories decreased: the average car with petrol paid 4.4 percentage points lower. The alcohol tax release / flex fell 32.5% to 29.2%. In the luxury segment, the tax also fell: 0.5 points in the car and gasoline (from 36.9% to 36.4%) and 1 percentage point in the alcohol / flex. Car 1997 2010 Motor 1.0 26.2% 27.1% tax tax Up to 100hp (or 2.0) 34.8% 30.4% diesel fuel 32.5% 29.2% alcohol alcohol Above 2.0 Gasoline 36.4% 36.9% 34.8% alcohol-gasoline 33.8% alcohol While the total tax burden in the country, according to the Brazilian Institute of Tax Planning, increased from 30.03% in 2000 to 35.04% in 2010, the tax on the vehicle did not follow this increase.

Not to mention the actions of the government lowered the IPI (removed in the case of cars 1.0) during the economic crisis. The incentive policy lasted from December 2008 to April 2010, reducing the price of the car by more than 5% without this benefit was fully passed on to consumers.