The first big salvo in a potential
marketing battle was fired with last Septemberís
announcement of a 30 percentage point increase in Brazilís
IPI Industrial Production tax for both imported cars and
those with less than 65 per cent Mercosur content.
The broadside, instigated by Brazilís concerned automotive lobby, and effective since mid-December last year, is aimed principally at Japanese, Korean and Chinese carmakers and is intended to protect Brazilís vehicle and automotive component industry.
Car imports, helped by the sharp recent appreciation of Brazilís Real, were rising at their fastest rate since records began last year - growing 34.3 per cent to 578,931, according to Anfavea figures, and Asian carmakers were among last yearís fastest gainers
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