Brazil’s National Association of Vehicle Manufacturers, Anfavea, said new vehicle sales were weaker in November after rising in the previous two months, due to fewer working days and strikes that left some dealerships short of cars, Reuters reported.
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But Anfavea said that average daily vehicle sales were improving thanks to economic recovery and a tax break given to car makers, the report added.
Anfavea president Ricardo Carvalho reportedly said average daily vehicle sales have risen since the government cut the so-called IPI tax on the production of industrialised goods by 3% in August.
Average daily sales rose to 6,525 vehicles in November from 6,125 in October and 5,687 in September, Reuters said, noting that, last week, the government decided to extend the IPI tax cut by three months.
According to the news agency, Brazil’s motor industry sold 130,300 cars, buses, and trucks in November, 7.4% less than it sold in October but 5.7% stronger than in November 2002.
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By GlobalData“November has three fewer working days (than October) and we also had the strikes, which is some cases produced a shortage in stocks in some dealerships in the country,” Carvalho told Reuters.
Brazil’s tough economic environment led to wage disputes between management and workers and strikes in plants owned by VW, Ford, DaimlerChrysler and Scania in recent months, the report noted.
Anfavea reportedly said there were 1.26 million new vehicle registrations in the first 11 months of the year, 6.8% less than in the same period last year.
Production of vehicles was stable in November and the industry made $US507.1 million from exports in the month, 11.7% weaker than in October but almost one-third higher than in November 2002, Reuters said.
