The impact of rising interest rates and lower consumer confidence in Brazil is now impacting its auto industry. Trade body ANFAVEA has said that auto production and sales fell sharply in August.

Car sales fell 15.1% from July's level to 244,800 units (but were still up 4% over the same month last year), ANFAVEA said.

Rising car exports partially offset the apparent slump in domestic sales. Manufacturers sold 67,900 units abroad in August, up 7.9% over July.

August production was down 1% from July at 314,700 units, but still up 12.6 percent year-on-year.

In August, 86.7% of all new cars sold were equipped with flex-fuel engines, which run on either gasoline or cane-based ethanol, or any combination of the two.