Brazil Feb Motor Vehicle Sales Rise 1% Vs Jan-Anfavea
March 09 2009 - 12:50PM
Dow Jones News
Brazil's motor vehicle sales rose slightly in February thanks to
a temporary government tax break that reduces car prices, the
National Motor Vehicle Manufacturers Association, or Anfavea, said
Monday.
Brazil's motor vehicle sales for February rose 1% to 199,366
units, but fell 0.7% when compared to February 2008 when abundant
credit had consumers in hot pursuit of new vehicles.
Production for February rose 9.2% to 201,685 units compared with
January, but output fell 20.6% from a year earlier.
Brazil's auto market, while a better performer than in the U.S.
and Europe, is suffering from the same credit constraints and a
rapidly ailing economy. The big three automakers in Brazil cut back
on production in November and December, but revved back up again in
late January and February after steep discounts on car prices had
consumers returning to car lots. Stocks of unsold vehicles have
dwindled down to manageable levels, according to company executives
at General Motors (GM) and Fiat (FIATY).
Exports of Brazilian made vehicles rose 27.1% to $528.8 million,
following sharp declines since November. Export revenue is down
49.2% in comparison to February 2008 figures, Anfavea said.
So far this year, Brazil produced 386,450 cars and light trucks,
down 24.1% on the year. Sales over the two month period are down
4.6% to 396,820 units and exports are down 53.8% to $962.7
million.
Most of February car sales were do to sales increases registered
by popular cars made by Volkswagen. The German automaker's sales
far surpassed rival Fiat, up 12.2% to close the month at 42,531
units. The carmaker sold 80,452 cars in January and February
combined, relatively flat in comparison with the same two-month
period last year.
Fiat sales rose 1% in February to 37,196 units, and 74,029
vehicles in January and February, down 12.4%.
General Motors sold 28,406 units in February, down 13.5%. So far
this year, the ailing U.S. automaker's sales are down 21.1% to
61,246 units in Brazil.
Ford (F) sold 17,201 vehicles in February, down 0.9%, but sold
48.8% more in the first two months of the year compared to the
first two months in 2008. Ford has sold 34,564 units.
Low cost car sales, especially the VW Gol model, have been
helped by steep cuts in sticker prices thanks to the temporary cut
in the IPI industrial tax. That tax returns in April, though
industry executives have expressed interest in keeping the tax
break in place until the economy shows signs of rebounding.
-By Kenneth Rapoza, Dow Jones Newswires, 5511-8812-5961,
kenneth.rapoza@dowjones.com
(Rogerio Jelmayer contributed to this story.)