Brazil Auto Sales in 1st Half of June Rise 24% on Year -Fenabrave
06/19/2012| 04:15pm US/Eastern
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SAO PAULO--Brazilian car sales during the first half of June jumped 24% from the year-earlier period as consumers rushed to take advantage of a tax cut on auto sales, auto dealer association Fenabrave said Tuesday.
Sales of cars and light commercial vehicles through June 15 totaled 175,659 units, up 19% from 147,312 in the first half of May, and up from 141,767 during the first half of June 2011. June sales so far are topping expectations by Fenabrave, which forecast 145,548 vehicles sold during the first half of the month.
Brazil last month announced tax cuts and a reduction in banks' reserve requirements relative to money lent for auto purchases, part of government efforts to boost sales that have been flagging this year. The measure was announced toward the end of May, boosting sales during the last two days of the month. But auto maker association Anfavea said that it expected to see the full effect of the tax cuts--which expire at the end of August-- to be felt in June.
Indeed, Anfavea President Cledorvino Belini said earlier this month that while sales averaged 13,067 vehicles a day in May, up from 12,894 a day in April, sales jumped to 18,500 on the last day of May and averaged about 15,000 during the first three business days of June.
Fenabrave data released Tuesday show sales above 17,000 per business day during the first half of June.
Truck sales, which had been suffering as a result of stricter emission standards, showed a slight recovery from May, with sales during the first half of June rising 5% from the first half of May. In comparison with the first half of June 2011, however, sales were down 28%.
Write to Paulo Winterstein at paulo.winterstein@dowjones.com
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