Brazil’s president signs Rota 2030 measure
Brazil’s President Michel Temer has signed a provisional measure which sets forth parameters under the country’s long-awaited Rota 2030, an automotive industry policy which maps out rules aimed at stimulating sector investment over the next 15 years.
One rule under the policy includes the federal government granting the industry up to 1.5bn reais (US$382mn) in tax credit for every year automotive companies jointly invest at least 5bn reais on research and development.
It will also address issues such as energy efficiency targets, vehicle identifying, structural performance, and incentives for electric cars.
The new policy, which replaces the previous one known as Inovar Auto, will only come into effect once approved by congress and published in the country’s Official Gazette. If this does not occur within 120 days, it becomes invalid.
Specific details on the measure should be announced by the federal government shortly.