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:

Ads

You May Also Like

Brazil Saves US$ 900 Million by Paying IMF Ahead of Schedule

Brazil, tapping into a surge in its foreign reserves, will pay back before year-end ...

In Sí£o Paulo, Brazil, Traffic Kills 4 a Day and a Robbery Happens Every 40 Seconds

Every day four people die from a traffic accident in São Paulo, South America’s ...

Brazil Festival Matures: 329 Films from 66 Countries

The 28th annual São Paulo International Film Festival opens today. By choosing the Cine ...

Brazil’s Sergio Mendes: 40 Years of Bossa

Piano man Sergio Mendes was a young man barely in his 20s when the ...

Spain Joins Brazil’s Zero Hunger with 520 Cisterns

A partnership signed January 24 between Brazil and the principality of Asturias, in northern ...

With an Eye Overseas, Brazil Imposes Stricter Sanitary Control on Fish

Brazil’s Ministry of Agriculture, Livestock, and Supply and the Secretariat of Aquaculture and Fishing ...

Brazil and 17 Countries Unite to Get Better Prices for AIDS Drugs

After three days of debates last week in BrasÀ­lia, the capital  of Brazil, governmental ...

Porno with redeeming value

CDs or Books by Keyword, Title or Author By "What’s the name of what ...

Kaftans, Abayas and Hijabs Are a Hit in Brazil Too

International clothing brands and retail chains are making room in their stores for the ...

A Glimpse of Wonder

Staring at the massive views and feeling the silent majesty of this place was ...