The Brazilian government will foster the manufacturing and technological research of hybrid cars (running on ethanol & electricity) in Brazil. “It is not enough only to manufacture. We want a research center in Brazil”, said the Minister for Development, Industry and Foreign Trade, Fernando Pimentel, during a meeting with the Hyundai CEO, Chung Mong-Koo, on June 2nd, in Seoul, South Korea. To allow transference of technology, Pimentel supported the idea that this research be made in association with small and medium-sized Brazilian companies. Chung Mong-Koo reassured the minister about the commitment with "technological development and production in Brazil".

The incentive to research is in accordance with the new automotive rules, which will be effective between 2013 and 2017. The companies that want to invest in research and development of hybrid cars in Brazil should be able to deduct 1% of the IPI (Tax over Industrialized Goods). Additionally, the government is studying measures to stimulate the use of ethanol- and electricity-fuelled cars. In the past few weeks, Minister Pimentel spoke with the Asian car makers over technology and advantages of the hybrid car. In Brazil, he met with CEOs from Toyota and Nissan. While on his trip to Asia, he approached the subject with Mitsubishi and Nissan. The four companies own the technology, but are still carrying on studies to improve the life span of batteries, along with vehicle autonomy.

Source: Ministry for Development and Portal Brasil