GWM is preparing to reap the rewards of local production of the Haval H6, manufactured in Iracemápolis, São Paulo, since the end of 2025. With the import tax for hybrid and electric vehicles expected to reach the full rate of 35% in July, versions of the hybrid SUV assembled in the country will have a more advantageous production cost compared to imported ones.
According to Ricardo Bastos, director of institutional affairs at GWM, this difference in the costs of the Haval H6 manufactured in Brazil will be used to offset the increase in prices of the units that still come from China, used to serve the market. This way, the company does not expect a decrease in the final value for consumers.
Understand the tax equation when importing vehicles
The SUV assembled at the Iracemápolis factory, which combines local components with parts imported under the ex-tariff regime, guarantees an important tax benefit. Despite this, the production capacity of the Brazilian unit is still not enough to cover the entire demand for the Haval H6 in the national market. The participation of national models in sales records has increased, corresponding to 65% of the 2,688 units registered in April.
In addition to the hybrid SUV, GWM also produces the Poer pickup truck in Iracemápolis (SP), which no longer requires additional imports. The Haval H9 SUV, however, still receives some units from abroad to meet the strong demand at dealerships. Bastos pointed out that, to fully supply the market with the H6, the GWM factory would need new investments to expand its facilities and increase production capacity.
The approach of nationalizing production allowed GWM to keep the pricing of the 2027 Haval H6 line practically unchanged, with an adjustment of just R$1,000 in certain versions. Even given this, the automaker will need to adjust its margins or transfer costs to other imported models, but the company guarantees that all planning already considered the 35% tax rate.
Political dispute over import quotas in Brasília
The automobile market scenario is attentive to the movements of other automakers, such as BYD, which is currently in dialogue with the federal government. The company seeks to extend import quotas for dismantled vehicle kits (CKD and SKD), which are used in its assembly line in Camaçari, Bahia. About a year ago, GECEX had already approved a six-month extension for these quotas, granting tax exemption.
BYD is now seeking a new six-month extension for these quotas. Alexandre Baldy, senior vice-president of BYD in Brazil, told journalists during an event to deliver the 300,000th vehicle in the country that the government instituted the initial quota for six months, justifying the need to monitor investments and compliance with companies’ commitments before advancing to a second phase.
These discussions take place on the eve of a new GECEX meeting, where the agenda may include the analysis of quotas for SKD and CKD kits. Anfavea, an association that represents vehicle manufacturers, together with other entities in the sector, is against the renewal of these incentives, pointing out the lack of clarity and predictability in government deliberations.