Brazilian vehicle sales are likely to increase slightly in February from January, preliminary data showed on Thursday, although analysts told Reuters the country’s car industry remained fragile.
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The report said that data from Brazil’s vehicle registry department showed local manufacturers sold about 85,000 cars and light trucks in the first 25 days of February, up 15% from the same period of last month.
But taking into account a daily sales average of 3,400 vehicles in February, sources reportedly said the motor industry is likely to sell about 99,000 cars and light trucks in the month, only 3% more than in January.
The sources told Reuters heavy rains in Brazil’s biggest cities kept consumers away from car showrooms in a month with only 29 days, while analysts added that price hikes also weighed in.
“A hike in car prices and [low] wages are holding consumers [back],” Glauco Carvalho, an analyst with MB Associados consultants, told Reuters, which noted that, last month, Brazilian manufacturers raised prices to compensate for a 12% to 15% hike in the cost of steel.
The news agency said that, according to industry sources, the local unit of General Motors has sold about 21,000 cars and light trucks so far in February, followed by Volkswagen and Fiat with around 19,000 units each, and 9,600 from Ford – official figures will be released next week.
Reuters noted that Brazil’s vehicle sales including buses and heavy trucks fell 36% in January from December as price hikes in a seasonally weak month followed a strong year-end buying rush, though the industry expects sales to rebound 7.8% this year.
