"What has been decided is to impose on the automotive industry electrification that brings 50% additional costs against a conventional vehicle," he said.

"There is no way we can transfer 50% of additional costs to the final consumer because most parts of the middle class will not be able to pay."

Tavares also said that the automobile industry was well placed to deal with crises, citing issues with the supply chain and the emergence of a new COVID-19 variant, Omicron.