Lured by Lower Taxes Brazilians Flock to Car Dealers

Car dealer in Brazil In Brazil automobile output climbed in June for the second straight month as car manufacturers stepped up production to meet growing consumer demand, the national automakers' association Anfavea said on Monday, July 8.

Production rose 8.4% to 283,900 units in June from the previous month, Anfavea said in a press release distributed in São Paulo. But on a year-on-year basis, output slumped 8.2% last month.

Sales also surged 21.5% in June to a record 300,002 units from the previous month, and 17.2% from June 2008, the group said.

A combination of tax breaks, lower prices and improved confidence has sent consumers flocking to showrooms, industry executives said last week.

The June data underscore the success of Brazilian President Luiz Inácio Lula da Silva's tax breaks on vehicles and home appliances to revive industrial production and pull the economy out of recession.

Fiat remained the market leader in June, selling 70,645 cars and small trucks, a 16.5% increase over May. Volkswagen sold 66,849 units last month, up 20%; GM's sales surged 22.5%, totaling 58.634 units and Ford, the fourth-ranked automaker in Brazil, completed sales of 58,634 units, up 32%.

Brazil's national dealers' association, known as Fenabrave, had already said last week that sales had jumped to a record high in June, helped by improving consumer confidence and government tax breaks.




You May Also Like

Despite Tax Break, Brazil Scientists Still Drowning in Red Tape

Researchers in Brazil will no longer be hit with big import duties on research ...

Stop Complaining on a Full Stomach, Brazil Tells Businessmen

The financial sector in Brazil is complaining for nor reason, says Guido Mantega, the ...

Social Forum Starts in Venezuela, But Brazilians Have Seized the Agenda

This is the first time that more activities for the World Social Forum, which ...

Regis Silva Brings Brazil’s Abundance and Famine to America’s Art Scene

To gain entrance into the work of Brazilian artist Regis Silva, it is important ...

Brazil and Argentina in Search of a Fair Automotive Agreement

Brazil and Argentina plan to extend their Bilateral Automotive Accord, which regulates vehicle sales ...

Brazil’s 9.1 Million Secondary Students to Be Offered Spanish Classes

Brazilian President Luiz Inácio Lula da Silva ratified a law today requiring public and ...

US Is Buying Less from Brazil

Although the US remains Brazil’s biggest trade partner, it is buying fewer Brazilian goods. ...

What You Can Do

What I discovered on this third journey opened my eyes to the possibility that ...

Brazil’s Supreme Justice Wants Army in Rio to Clean Favelas for Olympics

Former president Fernando Henrique Cardoso's party, the PSDB (Party of the Brazilian Social Democracy), ...