Vehicle Sales in Brazil Grow 32% and Break Record

Sales of new vehicles in the Brazilian domestic market achieved in June the best performance in the entire history of the sector for the month. Sales totaled 329,175 units last month, a 32.33% increase over the same period last year, according to a bulletin published Tuesday, July 3, by the Fenabrave (Brazilian National Federation of Motor Vehicle Distributors).

The sales volume includes trucks, buses, light commercial vehicles, and passenger cars.

With regard to automobiles, the sixth month this year was also record-breaking, compared with previous years: 188,631 units were sold, 33.94% more than in June 2006. Compared with May 2007, though, there was a 5.75% decrease. In the first half this year, vehicles sales saw a 19.03% increase over the same period last year.

Upon disclosing the bulletin, the president at Fenabrave, Sérgio Rezi, was optimistic regarding future businesses, and informed that the organization has reset its sales growth projection for this year, from 12% to 17%.

According to Rezi, ease of purchase, an extended period for repayment, and low interest rates were the reasons for the heating of the market. Nevertheless, he highlighted, that is not all. "The economy has been stable, and four years ago, president Lula decided not to introduce any novelties in the economic field."

In the opinion of the president at Fenabrave, the country's economic behavior leads consumers to assume the commitment of purchasing a vehicle, even if they have to pay instalments that may last up to 72 months.

ABr