Sales of vehicles in Brazil fell 3.4% last year to their worst level since 1999 as the sector was hit by high interest rates and a slowdown in the economy, an industry group said on Thursday, according to Reuters.
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But even though the lack of demand reduced sales of cars, buses, and trucks to 1.43 million units, the Association of Motor Vehicle Manufacturers (Anfavea) reportedly said manufacturers produced 1.83 million vehicles over the 12 months, 2% more than in 2002.
Reuters reported the group, which includes Fiat, Volkswagen and General Motors, also said the sector sold almost 32% more vehicles in December than in the same month in 2002.
The news agency noted that Brazil’s economy slumped into recession in the second quarter as the Central Bank jacked up interest rates to a four-year high to put the brakes on inflation – the bank has slashed rates by 10% since June, but has said it expects the economy to post negligible growth this year.
Reuters said Anfavea records show manufacturers sold 1.25 million vehicles in 1999, the year Brazil’s government devalued its currency as the economy was buffeted by crisis of investor confidence in emerging markets.
