The SRE ordinance 94/2024 limits the benefits to a few models; the change favors Toyota and excludes rivals from the market
The State of Sao Paulo has changed the IPVA exemption rules for 2025 and 2026, benefiting only vehicles that meet rigorous technical criteria. Ordinance SRE 94/2024, published in the Official Journal in December, limits the tax incentive to two specific hybrid models: Toyota Corolla Hybrid and Corolla Cross Hybrid. This information was published exclusively by the Mundo do Automóvel per PCD website.
The new criteria require hybrid vehicles to have an electric motor and a combustion engine that runs exclusively on or alternatively to ethanol. Furthermore, the minimum power must be 40 kW (54 HP), and the electrical system must operate at a voltage greater than 150 V, with energy recovery capability. The maximum price of the vehicle is also limited to R$250,000.
The requirements of the ordinance eliminate from the benefit several hybrids available in Brazil. Models such as Caoa Chery Tiggo 5X and Tiggo 7 Hybrid, Fiat Pulse Hybrid and Kia Stonic were excluded. These vehicles use mild hybrid systems, with electrical power less than 5 HP and voltage less than the required 150 V. Other vehicles such as those from BYD and GWM were also excluded, due to the use of petrol engines or prices above the established limit.
Additionally, future launches such as the Peugeot 208 and Chevrolet Tracker hybrid will also not meet the requirements, further limiting options for consumers seeking the edge.
The tax benefit will not be permanent. It will only be valid between 1 January 2025 and 31 December 2026. After this period, currently exempt vehicles will start paying IPVA on a staggered basis. The rate will be 1% in 2027, gradually increasing to 4% in 2030.
Source: Terra
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