BRAZIL: Auto output and sales plunge in September
Brazil's automobile production fell 19.5% and sales dropped 3.5% in September from August, the national automakers' association said. Automakers produced about 174,200 new cars and trucks last month while sales totaled around 200,100 vehicles, according to Anfavea. Compared with a year ago, auto output plunged 42.1% and sales dropped 32.5%.
Anfavea also revised its forecasts for sales and production in 2015, Reuters reported.
This year's sales are expected to decline 27.4% from 2014, compared with an earlier forecast for a 20.6% decline. Production is now expected to fall 23.2%, down from a previous forecast for a 17.8% drop. Anfavea head Luiz Moan said recently Brazil's auto sector was not expected to grow again until the last quarter of 2016.
Rising unemployment and record-low consumer confidence have left many Brazilians unwilling to make major purchases. Austerity efforts have led the government to cut back costly tax incentives that stimulated car sales in recent years, and the resulting price increases have added to the sharp downturn.