Brazil’s vehicle market is expected by Fiat to grow 3% in 2010, as the economy grows at the same pace.
The head of Fiat’s Brazilian operations told Italian newspaper La Repubblica that prospects for market growth in Brazil are positive.
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“There is still a lot of room to grow,” said Cledorvino Belini.
“The Brazilian automotive market doubled in the last five years and there is still 7.4 cars per resident, an average well below those for Europe and North America.”
In 2009, Fiat sold 730,000 vehicles in Brazil, giving it a market share of 24.5%, he says.
The auto industry in Brazil received massive government aid last year, with President Luiz Inacio Lula da Silva saying repeatedly that carmakers were key to helping revive output and bolster investment amid the first economic recession in 17 years.
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By GlobalDataNew registrations for new vehicles in 2009 increased 11.35% to a record 3.14m units.
Tax breaks, which eliminated or reduced industrial taxes on most new cars, will phase out by the end of the first quarter, prompting some analysts to speculate on market slowdown.
Lula’s policies to encourage banks to boost auto loans and stretch out payments for customers have also helped fund the recovery in output.
