Automobile output in Brazil jumped year on year in January, an indication that government-sponsored incentives helped propel domestic demand for new cars, the national automakers’ association Anfavea said.
Carmakers produced about 234,400 units last month, 31.6% more than January 2009, on sales of about 213,300 units, the association told Reuters. Production fell 3.7% from December 2009, after part of the government tax breaks finished.
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The auto industry 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.
The tax breaks, which eliminated or reduced industrial taxes on most new cars, will phase out by the end of the first quarter. Lula’s policies to encourage banks to boost auto loans and stretch out payments for customers also helped fund the recovery in output.
Sales rose 8% from a year earlier, yet dropped 27% against December, a month that saw strong production and sales, Anfavea said.
Revenue from car exports surged 66% in January while volumes more than doubled in the same period, Anfavea said. Exports fell 18% compared with December.
In January, Fiat sold 45,209 units and Volkswagen sold 39,282 units. GM sold 44,114 cars and utility vehicles, while Ford said sales reached 22,498 units in the same period.
