Volkswagen, Fiat, and Renault are now offering discounts with the new IPI Verde; see models and prices

Car manufacturers Volkswagen, Renault and Fiat announced discounts this Friday (11) after the publication of the decree that creates the IPI Verde program , which eliminates or reduces the Tax on Industrialized Products for less polluting compact vehicles manufactured in Brazil.

According to Anfavea (National Association of Automotive Vehicle Manufacturers), the companies that have already signed up to the program are Stellantis (which includes Citroën, Fiat and Peugeot, for example), Volkswagen, Renault, Chevrolet and Hyundai.

Folha contacted ten brands, including the seven mentioned. Citroën, Chevrolet, Hyundai, Honda, and Toyota did not respond to a request for comment regarding special discounts. Peugeot says none of its models are eligible for the Green IPI. BYD, because it only makes imported cars, will not be part of the program.

See below the models with new prices and conditions announced by the manufacturers.

VW has launched the VolksVale+ campaign, offering a discount equivalent to double the IPI tax (Brazilian Institute of Industrial Property), as well as zero financing rates for some models. The terms and conditions are valid until July 31st or while supplies last.

Models included in the promotion:

• Saveiro Robust CS : from R$ 109,490 for R$ 88,687 (19% discount, reduction of R$ 22,803)
• Polo Highline : from R$ 131,650 to R$ 120,240 (8.7% discount, reduction of R$ 11,410)
• Virtus Highline : from R$ 155,490 to R$ 144,080 (7.3% discount, reduction of R$ 11,410)
• New T‑Cross 200 TSI : from R$ 154,990 to R$ 144,854 (6.5% discount, reduction of R$ 10,136)
• New Nivus Highline : from R$ 163,290 to R$ 146,490 (10.3% discount, reduction of R$ 16,800)

Renault announced this Friday that the Kwid will have a R$2,000 cut due to the IPI Verde, in addition to additional bonuses, resulting in drops that reach R$11,400, depending on the version:

• Kwid Zen 1.0 : from R$ 78,690 to R$ 67,290 (14.5% discount, reduction of R$ 11,400)

• Kwid Intense 1.0 : from R$81,790 to R$71,290 (12.8% discount, reduction of R$10,500)

• Kwid Iconic 1.0 : from R$85,190 to R$75,690 (11.2% discount, reduction of R$9,500)

• Kwid Outsider 1.0 : from R$85,290 to R$75,790 (11.1% discount, reduction of R$9,500)

Ariel Montenegro, president of Renault Brazil, stated that the IPI Verde program is essential to guarantee access to new cars for the largest number of people.

Fiat also launched an advertising campaign, called "Grande Chance," with reduced prices thanks to the new IPI Verde (Green IPI). The offers are valid until July 31st or while supplies of 50 units per model last.

The discounts are:

• Mobi Like : from R$80,990 to R$67,990 (16% discount, reduction of R$13,000)

• Mobi Trekking: from R$82,990 to R$73,290 (11.7% discount, reduction of R$9,700)

• Argo Drive 1.0 MT : from R$94,990 to R$86,990 (8.4% discount, reduction of R$8,000)

Promotions are only valid for retail sales to individuals and do not include categories such as rural producers, people with disabilities, fleets, taxi drivers and rental companies.

The program provides for exemption or reduction of IPI for vehicles that emit less than 83 g of CO2 per kilometer, have a recyclability rate above 80% and are produced in Brazil with local welding, painting, assembly and engine manufacturing.

This excludes currently available Chinese electric vehicles, such as BYD models. The company says the BYD Dolphin Mini was assembled in Camaçari, Bahia, but that domestic production has not yet begun, and therefore, they will not be part of the program.

The categories covered are limited to compact models, which can be hatchbacks, pickup trucks, or SUVs. The measure encourages domestic production of small models with flex-fuel hybrid technology, which combines ethanol, gasoline, and electricity.

Interested automakers must apply to the Ministry of Development, Industry, and Commerce (MDIC) to license their vehicles. After review and approval, an ordinance will be published listing the models eligible for the full discount. Currently, the minimum tax rate for these vehicles is 5.27%.

For other vehicles, the decree establishes a new IPI calculation system, which will take effect in 90 days. The new table starts with a base rate of 6.3% for passenger vehicles and 3.9% for light commercial vehicles, which will be adjusted through a system of increases and decreases.