The Brazilian light vehicle market was up over 26% in January, compared to a year earlier. Light vehicle registrations total 125,731 units, compared to 99,624.
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Rogelio Golfarb, president of ANFAVEA, the Brazilian automotive industry trade association, quoted in the Agencia Autodata newsletter, attributes this to growing consumer confidence and their willingness to enter into credit agreements. Around 70% of Brazilian light vehicle sales are on credit.
Of the total 6,678 light vehicles were imported, up 38% on a year earlier.
Volkswagen led the market in January, followed by GM, Fiat and finally Ford.
Domestic production was also up strongly. 175,000 vehicles were produced in January 2006, an increase of 21% over a year earlier, and a further 14,600 were assembled from CKD kits (+73%).
Brazil has been fighting against overcapacity since the market collapsed at the end of the 1990s, following a massive wave of investment by global OEMs. According to ANFAVEA total installed capacity is currently 3.5 million units. The trade association is forecasting total production of 2.5 million units in 2006, according to Agencia Autodata.
