The governments of Brazil and Paraguay launched an automotive policy aimed at offering new cars to Paraguayan families for less than $10 thousand. The launch ceremony took place this week in Asunción, capital city of Paraguay, and was attended by Brazil's Minister for Industry, Foreign Trade and Services Marcos Pereira and Paraguay President Horacio Cortes.
The program is entitled “Vehículo Zero Kilómetro para la Familia Paraguaya” and is expected to provide the funding for 20 thousand vehicles through the National Bank of Paraguay for 12 months. The Brazilian government expects that 5 to 10 thousand cars manufactured in Brazil are traded under the program.
The pact was finalized with Brazil-based assembly plants and should include five popular models: Renault Kwid, Fiat Mobi, Ford Ka, VW Gol, and Chevrolet Onix.
One of the main features of the program is that the warranty of cars comes from the assembly plants. The Paraguayan market purchases 80 thousand cars every year—60 thousand of which are used and imported from Japan, the US, and South Korea.
From January to October this year, Brazilian exports to Paraguay went up 23.3 % compared to the same period last year—going from $1.78 billion to $2.18 billion. The country ranked 19th among Brazil's partner countries.
In the auto sector from January to October this year, transactions in bilateral trade added up to $535 million (up 63% from the same period last year), with exports totaling $370 million (up 58.5%) and imports $165 million (an increase of 68%).
During the period, Brazilian exports of cars, light vehicles, trucks, and buses to Paraguay totaled 10,915 units ($121 million), which accounts for a 235.9% boost in the amount of units compared to 2016.
Translated by Fabrício Ferreira