New vehicle sales in Brazil jumped 19.9% in September from August, the national dealers' association Fenabrave said on Thursday.

Buyers took advantage of an expiring tax break.

Brazil's new car prices are set to rise as a tax break expires at the end of this month, though the impact on the market is expected to be limited.

Sales of new cars and trucks in September reached 296,651 units. Year-to-date car sales grew 5.5% from the same period of 2008 to 2.21m units.

The industrial production tax, or IPI, was cut by the federal government in December in an effort to help support the car market.

The measure has been largely successful as carmakers passed on the IPI savings to consumers - typically 5-7%.

The tax is being gradually reimposed in a series of adjustments following its extension from June.

Vehicle sales are expected to hit or top 3m vehicles in Brazil this year, according to the Brazilian Automotive Vehicles Manufacturers Association, Anfavea. In 2008, Brazil sold around 2.8m vehicles.

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