Sao Paulo, Brazil, 28 Sept – Chinese company Great Wall Motors has given up on its project to enter the Brazilian market following an increase in tax applied to imported cars decided by the Brazilian government, Brazilian magazine Exame reported.
“The rise in tax has temporarily made negotiations unfeasible,” the managing director of importer CN Auto, Ricardo Strunz told the magazine.
Exame said that Great Wall, which has been interested in entering the Brazilian market for years, planned to do so now because of the wide acceptance of other Chinese brands such as Chery and JAC.
CN Auto is also the official importer of Topic vans, made by Jinbei, and Hafei Motor’s Towner van and the rise in the Tax on Industrialised Products, as well as bringing an end to negotiations with Great Wall, will also have an impact on the company’s accounts.
“With this rise in tax, sales are going to fall,” said Strunz adding that the company is analysing what can be done to prevent bigger losses and plans to present just two new models, rather than the four previously planned, at Fenetran, Brazil’s biggest automotive sector fair held in October in Sao Paulo. (macauhub)