Tuesday , January 26 2021

The 2021 state budget leaves the automotive sector in a “state of emergency”

State of emergency. This is how the car brands and companies in the sector that have been in contact with Razão Automóvel come together. With the sector’s turnover losses of more than 35% a year, the expectation was to support an industry that employs more than 150,000 people in Portugal and accounts for 21% of state tax revenue. It’s pretty different for 2021.

In addition to the lack of support, affected companies and associations believe the PAN proposal approved by the PS and the Left Bloc to limit tax incentives for hybrid vehicles and plug-in hybrids is punishing the country economically and environmentally.

Unexpected plan change

Just a month and a half before the end of the year, when all the annual plans are already closed, companies in the automotive sector are forced to review everything.

Demand, sales, investment and vehicle stocks are influenced by the proposals presented by the PAN – Animal People and Nature party and the proposals approved by the PS – Partido Socialista e Bloco de Esquerda.

Hélder Barata Pedro, Secretary General of the ACAP (Portuguese Automobile Trade Association), was surprised by the amendment, which says that the Association was not heard during this process.

The most critical criticisms of this decision come from the mouth of the National Automobile Branch Association (ARAN). This association considers the PAN proposal to be “fundamentalist” and does not understand the Government’s position. “It is a bad budget for the sector, which was difficult to ensure its approval. He seems to prefer an older, more polluting parking lot. The government is destroying a sector to ensure support votes in the 2021 State Budget, ”said ARAN President Rodrigo Ferreira da Silva.

RELATED: The European Commission advocates hybrids. “Not enough clean energy for 100% electricity”