Brazilian Car Makers Euphoric over Sales. 1.2 Million Flex-Fuel Cars Sold

The automobile industry began 2006 commemorating the results of domestic car sales in December, a month the sector regards as exceptional, with 183.6 new vehicles being licensed.

This is the best result obtained by the assembly plants installed in Brazil for the month of December since 1997, when the number exceeded 189 thousand units.

December’s figure represents a 3.2% increase in relation to December, 2004, and a 16% increased in comparison with November, 2005.

"The domestic market displayed renewed force in the fourth quarter, and this permitted us to record the best performance in the last eight years," observed Rogélio Golfarb, president of the National Association of Automobile Manufacturers (ANFAVEA).

1.72 million new vehicles were licensed in Brasil in 2005, 8.6% more than in 2004, when domestic sales attained 1.57 million. In Golfarb’s opinion, the good performance can be attributed to the country’s favorable economic situation.

"Everything points to economic growth, and this result represents a combination of factors," he pointed out, mentioning reductions in the annualized benchmark interest rate (Selic), the Long-Term Interest Rate (TJLP, used in loans for capital goods), and the Brazil risk premium, as well as the control of inflation.

The executive highlighted the impressive participation of low-priced vehicles, which represent over half the sales (57%), and the demand for flex-fuel vehicles (71%).

Since they were introduced on the market in March, 2003, 1.2 million flex-fuel vehicles, which can consume either gasoline or alcohol fuel, have been sold.

Golfarb said that the current concern is with exports. During the course of 2005, the sector complained about losses caused by fulfilling foreign sales contracts under conditions of downward fluctuations in the value of the US dollar.

Agência Brasil

Tags:

You May Also Like

US$ 9 Bi: Foreigners Haven’t Bought Brazilian Shares Like That in 62 Years

Investment from overseas in shares negotiated in Brazil reached US$ 8.761 billion this month ...

The Ones to Beat

Brazilian Hélio Castroneves became the first Indianapolis driver in 31 years to successfully defend ...

4% or 146,000 Workers in Brazil’s Mines Are Children

The World Day Against Child Labor, instituted in 2002 upon an initiative of the ...

What Brazil Lacks Is a Project of Inclusion

Over the decades we have created in Brazil the idea that economic growth is ...

Brazil Launches Its Fourth Submarine

Brazil will launch its fourth submarine, the Tikuna, on Wednesday, March 9. The construction ...

Exports Help Brazil’s Petrobras Reach New Record High

Petrobras, the state-controlled Brazilian oil company, hit a record high oil processing level in ...

Brazil Forbids Sale of Convenience Goods in Pharmacies, But Rule Is Ignored

Starting this Thursday, February 18, new rules from Brazil’s National Health Surveillance Agency (Anvisa) ...

Artists and Cannibals

Organizers of São Paulo’s 24th Bienal are expecting that 450,000 will be drawn by ...

Brazil’s Arab Summit Will Decry Terrorism

The final document of Brazil’s Summit of South American – Arab Countries to be ...

Wrongdoers Will Be Punished, Vows Brazil’s Lula

Brazil’s President Luiz Inácio Lula da Silva said that, for the government’s social programs ...