Cars cost much more expensive in Brazil than abroad
This article was translated by an automatic translation system, and was therefore not reviewed by people.
Brazil is not known only as the country of samba and football, is also champion in the high car prices in relation to countries like USA, Mexico, Argentina and the European Union. The figures show that the leading country in question. A truck 4X2 Toyota Hilux double cabin, which costs $ 73,766 in Brazil, is sold for 88,100 pesos for the "Argentine brothers", the equivalent of U.S. $ 59,979. More luxurious, imported the Ford Edge is offered in the Brazilian market for $ 149,700, but in Mexico is sold for less than half the price: 364,000 pesos, or U.S. $ 59,282. The contrast is even greater when considering the United States or Europe.
The reason for such difference in price - and that generates more discussions between automakers and government - is the tax burden. In Brazil, Tax on Industrialized Products (IPI), Tax on Circulation of Goods and Services (ICMS), Social Integration Program (PIS) and Contribution for the Financing of Social Security (COFINS) represent on average 30.4% of value that comes to the Brazilian.
"This same value for other countries is much lower. In Spain, for example, is 13.8%, in Italy, 16.7% and the United States, 6.1%, "says the vice president of Booz & Company, Letícia Costa. But the vehicles imported from countries without the car with Brazil's experience with the recovery rate of 35% on the value of the product.
However, taxes are not the only villains. Nor will the "baggage" that other factors exert strong pressure on the prices of cars. One is the so-called Brazil cost, which ranges from the value of labor to the customs clearance in case of import of products and parts. In this respect, it is spending on logistics, since the country is large and depends, basically, from roads and ports for transport. The roads, in particular, cease to be desired in quality, to compare, for example, the North American infrastructure.
The scale of production is another factor that influences prices, since the higher the volume produced, children are spending. Comparing with the United States, China, Japan and Germany, the national automobile industry's production is much lower, with a capacity of 3.5 million units per year. To have an idea, only in 2007, the United States produced 10.780 million vehicles.
According to Leticia Costa, there is the "rate of comfort". "In many cases, the domestic manufacturers in this and in other industries, they pay a slightly higher price for raw materials and to avoid problems with their supply chains, such as strikes in the federal police and problems with ports," he adds.
Explosion of demand
Outside costs and higher taxes in many markets, there is also the action of the famous law of supply and demand: when demand exceeds supply prices go up and vice versa. It was the explosion in demand of the Brazilian market that most influenced the prices until September 2008.
The ample supply of credit has led many consumers to stores. With the production in the limit, auto, automakers and dealers could deal with higher profit margin, since it lacks the car market. Thus, prices rose and people left the car to buy between November and December, when the crisis has shaken the behavior of the market and the government reduced the recovery of IPI, has a better business.
Now the game has changed. With the drop in sales of cars, no assembler is risked, so far, change the price list. "There is forecast to increase prices, since the effects of reduction of prices and devaluation commmodities are not yet clear," says Leticia Costa.
Technological lag
The price difference is further accentuated by the technological gap. In Europe, General Motors sells the Corsa of two generations younger than the model sold in Brazil, with the number of security enhancements such as ABS, electronic speed control, traction control, stability control, automatic time correction lights, airbag of two phases for driver and passenger, antifurto electronic, adaptive brake lights (flashing brake in case of emergency), power steering, electric windows etc.. And the price of a Corsa in Italy is 12,401 euros, equivalent to R $ 38,690.
A more complete version of the model in Brazil is 1.8 Super Sport, with the value from $ 43,546. Among the items in the series model are hydraulic steering system, anti-theft alarm, fog light of the lantern coupled rear, pedal DOWN in case of impact, air-conditioning, electric windows and locks.
The same is observed with products from other manufacturers. The Fiat Punto with airbags, electronic antifurto, ABS, traction control, stability control, etc.., Out of 11,901 euros, or U.S. $ 37,130. In the Brazilian market, the entry version of the Punto 1.4 costs $ 38,368.
But the Ford Fiesta, a generation younger, costs 11,151 euros, equivalent to R $ 34,790 and comes with ABS, front airbags, side and legs of the driver, antifurto electronic, electric direction, a device for preventing fire, among other items . A more complete version of the Fiesta in Brazil - with 1.6 engine, hydraulic steering, airbag, ABS brakes, among other items - leaves for U.S. $ 45,685.
"The problem really is that the growth of the domestic market and other factors as the volatility of exchange and aspects' normative and policy ', came away from the new markets outside of Brazil," says the consultant and partner of the market Creating Value Consulting, Corrado Capellanía.
"Today, very few are those that produce global platforms. Our products are not those who were in 2001 or 2002, when we export to Europe or the United States and competíamos with factories in Eastern Europe and Mexico, "says Capellanía.
Source: G1
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