The Brazilian government has launched a major economic stimulus initiative offering up to 30 billion reais ($5.95 billion) in subsidized credit to help ride-hailing and taxi drivers purchase new vehicles. Signed into law by President Luiz Inácio Lula da Silva, the “Move Brasil” program is designed to widen credit access, lower operational costs for gig workers, and rejuvenate the domestic automotive industry.
Under the new policy, eligible drivers can secure below-market-rate financing to buy cars priced up to 150,000 reais ($29,800), a tier covering roughly 60% of all vehicles sold in Brazil. The program specifically targets sustainable automotive choices, encompassing flex-fuel, hybrid, and electric entry-level models. To qualify, taxi drivers must hold active registrations, while app-based drivers from platforms like Uber, 99, and InDrive must demonstrate a minimum of 12 months of experience and at least 100 completed trips within the past year.
The state-backed development bank BNDES will manage the credit line, routing funds through commercial partner banks with a 72-month repayment window and a six-month grace period. To encourage lending, a federal credit guarantee scheme will cover up to 80% of the financial institutions’ default risk, while female drivers will be offered even more favorable financing terms. President Lula highlighted that the monthly loan installments are intended to be more affordable than the high fees many drivers currently pay to rental companies, offering a viable path to vehicle ownership for an estimated 250,000 to 1.4 million eligible workers.
While the program provides a substantial lift to the transport and manufacturing sectors, it has drawn some economic caution. The central bank has previously raised concerns that injecting large waves of subsidized credit can weaken the transmission of monetary policy, making it more challenging to control inflation through standard benchmark interest rate adjustments.