Brazilian vehicle sales fell 36% in January from December as a seasonally weak month followed a strong rush of year-end buying, Reuters said, citing data from the country’s Brazil’s motor industry.
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Brazilian vehicle makers sold 107,400 cars, buses and trucks in January, a 4.4% decline from January 2003, the Association of Motor Vehicle Manufacturers (Anfavea) reportedly said in a statement, which added that production rose 2.1% to 157,300 units.
According to Reuters, Anfavea did not give an explanation for the sharp decline in sales, but industry experts had expected sales to crash in comparison to December, when they hit a record level as consumers took advantage of falling interest rates and a government-sponsored tax break.
Consumers also rushed to buy cars in December in expectation that prices would rise in January, the report noted.
Reuters noted that vehicle sales fell 3.4% in 2003 but are forecast to rebound 7.8% in 2004 amidst a general increase in economic activity and expectations that interest rates, and therefore finance costs, will continue to fall.
Anfavea also reportedly said vehicle industry exports fell 4.1% from December in January to $471.4 million, which was, however, an 81.2% increase compared with January 2003.
