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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


  • Show Comments (4)

  • Guest

    just a remark…
    yes, although you may think we should ‘feed’ the poor brazilian people like animals, we must consider first that people must work to be able to buy food!

    If the industry grows, it’s excellent for the economy, the jobs are kept (or increased) and the population benefits as well.

    And please, don’t judge something that you don’t know. Brazil is the 11th economy in the world. Of course, there are poor people, but it’s not a jungle where everybody is hungry and miserable. There is a considerable middle class and even the low class people are getting their their chance to work and have a better life.

    I am brazilian and I’m disappointed with the image that the whole world has of my country. Unfortunately, for the midia it’s better to show the hungry child… they sell more than if they showed a working class progressing and a great and modern city like SÀƒ£o Paulo. And you people also preffer that. Because you like to pretend you’re sorry for other people.

    As for the automotive industry, I’m glad it’s growing. The strongest work unions in the country are in this sector and they manage to guarantee good conditions for those people who make the machines work.

  • Guest

    Euphory in Brazil……
    …brings just more corruption as more money can be shared, for a few.

    Hunger and poverty in Brazil will last another century, despite they self proclaim to be the world’s garden.

    There is enough to export but not enough to feed their own people.

    An insult to humanity and dignity !

  • Guest

    again and again…..
    ….the US$ is NOT weak.

    It is the Brazilian Reais that is strong against ALL major currencies in the world, because of your insane interests rates.

    Blaming others when the problem is created by decisions done in your country is your daily life. But when things are in your favor it is obviously because of your decisions.

    Too easy. Wake up !

  • Guest

    But then…
    Yeah, Euphoric.

    Now where does this fit in the brazilian people’s misery, hunger?

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