Brazilian new vehicle sales in 2011 set another record: 3.63m units including cars and light/heavy commercials.
So it’s now the fourth largest market in the world, ahead of Germany and behind only Japan, China and the United States.
Go deeper with GlobalData
The year on year rise was 3.4% but below the 5% expected both by manufacturers association Anfavea and dealer lobby group Fenabrave.
Production was 3.41m vehicles (up 0.7%) reflecting reduced exports.
Anfavea reckons sales will rise between 4% and 5% this year as the first forecast for the year but its forecast is considered optimistic by many industry observers. Production is seen rising 2%.
More discounting is expected in 2012 together with narrower margins than last year.
Surveys confirm the Brazilian market is eager for new models, according to consultant Francisco Trivellato. Of the 100 most popular vehicles in the last three months, those newly launched or substantially updated accounted for 20% of total sales.
Chinese brand JAC is already offering a R$1,000 (US$550) incentive to J3 and J5 compact buyers and also not passing on the new IPI tax in the retail price – this is the recently introduced temporary excise tax rise on imports from non-Mercosur countries or Mexico, with which Brazil has a free trade agreement.
