The Brazilian market is continuing to perform ahead of expectations, forcing the local vehicle manufacturers' trade association, ANFAVEA, to one again revise its forecast for the full year upwards.

In the first six months of the year total new vehicle registrations were up over 26% and in June alone they were up 34%. Passenger car sales are now up 2.6.5% in the year-to-date to 873,657 units, up from 690,153 units a year ago. Registrations were up 35.6% in June alone from 118,815 units in June 2006 to 161,076 units in 2007.

ANFAVEA is forecasting that the market for all vehicles will reach 2.35m units for the full year. In the first six months total registrations were 1.08m units. The year-to-date result includes 873,000 cars, 154,000 light trucks, 44,000 heavy trucks and 10,500 buses.

Production is forecast to be 10% up in 2007 and reach 2.87m units. 1.3m vehicles were assembled in the first six months of the year, up from 1.2m a year ago.

The forecast for exports has been revised slightly downwards, while ANFAVEA is now forecasting that imports will be higher. It is forecasting that 750,000 vehicles will be exported in 2007, and 230,000 vehicles imported.