Brazilian Government Increases Vehicle Financing Limit for App Drivers and Taxi Drivers

The Brazilian government has increased the maximum price of vehicles eligible for financing under the Move Brasil program from R$ 150,000 to R$ 200,000. Published in an extra edition of the Official Gazette on Wednesday, the new rules also expand the definition of eligible hybrid vehicles to include those using electricity alongside other fuels like gasoline or ethanol. The government estimates that this change will increase the program's market reach from 63 percent to 88 percent, allowing drivers to access higher category services such as Uber Black and Uber Comfort.

To qualify, app drivers must have an active registration for at least one year and have completed at least 100 trips on a single platform during that period. Taxistas must maintain active licenses, registration with transit authorities, and fiscal regularity. Eligible vehicles must come from manufacturers participating in the Mover program, including brands such as Volkswagen, Fiat, Toyota, and BYD, and must be classified as sustainable, flex, or hybrid.

The program offers a total of R$ 30 billion in credit via the BNDES to subsidize the difference between market interest rates and the program's lower rates, which are set at 12.6 percent annually for men and 11.5 percent for women. In contrast, the government reports that average market rates for auto financing are around 28 percent. Despite these incentives, adoption has been lower than expected. One source reports that only 11 percent of the available funds have been released, while Finance Minister Dario Durigan noted that private banks have shown less appetite for the operations than public banks.

Outlets with different political leanings framed the motivation for this policy change differently. A center leaning source framed the increase as a strategic move by President Lula to increase his popularity and attract voters from the Bolsonarista camp during an election year. A center left leaning source framed the change as a response to low demand and a recognition that initial program adhesion was below expectations.