Vehicle sales and production picked up sharply in Brazil in October according to data released by auto trade body Anfavea.

Production was put at 316,000 units up 15.7% from October from September and also up 6.3 percent when compared to October 2008, Anfavea said.

Vehicle sales surged 23.1% in October over last year, to 294,100 units.

Vehicle sales in the first ten months stand at 2.6m units, 6.1% higher than the same period of last year.

Analysts say car demand in Brazil this year is being helped by tax breaks and continuing low interest rates, as well as plenty of new model activity.