A car purchase tax reduction in Brazil has lifted car sales in January according to the Brazilian carmakers’ association, ANFAVEA.

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According to ANFAVEA, car sales in Brazil were up 9% over previous month levels in the part month period Jan 1-Jan 20.


It also said that inventory levels have reduced during the month.


In November there were 56 days of stockpile (305,000 units) which declined in December to 36 days (212,000 units) and is estimated at 26-28 days in January.


ANFAVEA chairman Jackson Schneider said: “The government measures have definitely prevented a further drop in sales.”


However, local analysts maintain that the outlook for Brazil’s car industry remains highly uncertain.


BRAZIL: Auto industry faces uncertain year


 

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