A green entry car may be the future popular car

By Alzira Rodrigues | 4/10/23 | Translated by Jorge Meditsch

At the release of the first quarter numbers this Monday, 4/10, Anfavea’s president, Márcio de Lima Leite, made a point to emphasize the association doesn’t participate officially in negotiations with the government to redeem the popular car. Nevertheless, he gave a name to the project that aims to offer a simpler and more affordable model: the green entry car.

“This debate doesn’t impact all Anfavea’s associates”, he said. “Therefore, the manufacturers interested are talking directly with the government”. He told there is nothing yet defined about the contents of this new green car, but there are information about reaching 300 thousand additional vehicles produced if the project is concretized.

The redeem of the popular car was initially addressed by Stellantis’ president, Antônio Filosa, and received support from Fenabrave’s president, José Maurício Andreta. Volkswagen do Brasil’s president made it clear there is no consensus about the idea.

Currently, only two brands, Fiat (owned by Stellantis) and Renault offer entry models, the Mobi and the Kwid. Both have prices starting at R$ 70 thousand and could develop a green version more fastly.

According to the ongoing discussions, the green entry car could carry less comfort and safety items, without contradict the current country’s regulations. It should be a smaller and simpler model. It would also have differentiated tax rates and possible margins reduction by manufacturers and dealers.

“Everything is being discussed,” say those involved in the project. Questioned if one of the options is an ethanol-exclusive model, not a flex-fuel car as the models currently produced in Brazil, Anfavea’s president said that “the ethanol has a great green appeal with low cost”.

He neither confirmed or denied the possibility. The executive said the objective is decarbonization and emissions reduction, another option to be discussed.

Regarding this mater, Fenabrave’s president had already said it would be difficult to have a 100% ethanol car due to this fuel supply. He remembered that, when the cars moved by alcohol dominated sales in the country, the lack of fuel caused chaos.

With the green entry car, it is being discussed the light vehicle fleet renovation through incentives to change old cars by less-used ones. There is already a similar program for heavy vehicles, the Renovar Auto.

More favorable credit conditions for popular cars are also in discussion. Anfavea’s president mentioned Chile, which has warmed the internal market by opening the workers’ Provident Fund for car buying.

“This fund is similar to our FGTS. The idea should be, for instance, to use 25% of the fund to buy a new car. This should boost retail and increase sales in the Brazilian market”.