October vehicle sales in Brazil were 5.7% under the same month last year, a result seen as better than expected by the local dealer organisation.

Brazilian automotive dealers sold 398,507 cars and trucks in October.

Sérgio Reze, president of the Brazilian Association of Vehicle Dealerships (Fenabrave) said that the decline in sales owes more to increased selectivity by banks that grant auto loans than to a consumer contraction.

“Demand at dealerships remains strong, but credit has become more restricted,” said Reze.

Reze also said that recent government measures aimed at boosting market liquidity should help sales in November.