Brazilian “Route 2030” Program Foresees R$1 Billion to Develop Automotive Technology

RIO DE JANEIRO, BRAZIL – The ‘Rota 2030’ (“Route 2030”) Priority Programs were launched on Friday, September 20th, and are an incentive policy for the federal government’s automotive sector.

The automakers will be able to invest in technological development at the rate of 2 percent that would be paid on the import of parts without equivalent in Brazil.

The funds collected through the tax exemption will be managed by a management board, which involves representatives from industry and academia. The estimate is that it be investments of R$ 200 (US$50) million per year for five years, totaling about R$1 billion.

The money will be released for the project through five entities that will manage the resources sectorally: National Bank for Economic and Social Development (BNDES), Financier of Studies and Projects (FINEP), National Service of Industrial Learning (SENAI), Brazilian Company of Industrial Research and Innovation (EMBRAPII), and Foundation for Development of Research of Minas Gerais (FUNDEP).

“This money will be used, together with the entities, for the academy to develop, do research and innovation so that we can meet these demands of society,” explained the president of the National Association of Motor Vehicle Manufacturers (ANFAVEA), Luiz Carlos Moraes.

“We want more efficient, smarter, more connected, and safer cars. This is a partnership that involves the private sector and the entities and the academy in order to have better vehicles,” he added.

The investments will allow, according to Moraes, the automakers to meet a schedule of improvement of vehicles produced in Brazil stipulated by the Route 2030.

“We have a schedule of targets for energy efficiency, emissions, to implement safety items, which are already defined. This contribution of money will help to accelerate the implementation of these items,” said Moraes, adding that the schedule provides targets to be achieved over the next ten years.

The president of EMBRAPII, Jorge Almeida Guimarães, said that the choice of projects that will receive the contributions will follow the guidelines that are already used by the company to encourage technological development in the sector.

“Our model is very simple. We pre-select qualified research groups that work in applied research and innovation. We do not finance basic research. We select by public call what is best in Brazil”, he explained.

“At any time the company can contact EMBRAPII’s unit and discuss its project with the technicians. The project always belongs to the company, which determines the characteristics, which technology will be used and how much will it cost”, he added.

With the model, Guimarães believes that 100 new projects can be initiated immediately from the R$40 million per year, which will be managed by EMBRAPII.

The “2030 Route” is a program that defines rules for automobiles produced and sold in Brazil in the next 15 years.

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