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Vehicle Sales in Brazil Zoomed Ahead in April 2008
Jul 25, 2008

The Brazilian auto industry grew by 29.9% in April 2008, thanks to improved consumer spending, higher employment and easy availability of auto finance.

According to the National Motor Vehicle Distribution Federation (NMVDF), automobile sales in Brazil increased by 29.9% in April 2008 compared to April 2007, as reported by THE HINDU.

NMVDF disclosed that the auto industry witnessed a significant increase in the sales of LCVs (Light Commercial Vehicles) in April 2008. The LCV market in Brazil posted a top monthly result of 248,900 Units since October 2007, a rise of 12.65%. Truck and bus sales in April 2008 increased by 16.40% with total sales reaching 11,100 compared to 9,500 Units in April 2007. Sales by motorcycle segment touched 173,700 Units, a straight growth of 14.97%.

The primary reason for the growth in Brazil auto sector in April 2008 is the availability of better job opportunities coupled with rising income of the consumers. This boosted the consumer confidence, spurring vehicle demand in Brazil, the most populated country in Latin America. Improving lifestyle of the Brazilian populace is also pushing up the vehicle demand in the country. Auto sales increased in Brazil on account of more demand for vehicles by people to make their lives more comfortable.

Moreover, improvement in the Brazilian economy is also responsible for high growth in the auto sector as the demand for its products is increasing worldwide. Now financial institutions are also giving loans easily to the customers as the government expenditure is more disciplined, minimizing prospects of any financial meltdown. Interest rates have also been lowered as the Brazilian government has reduced its national and international debts, supporting the automobile industry in the country further.

The new automobile market in Brazil witnessed high sales due to improved buying power of the people, flexible credit terms, decreasing inflation and financial stability. The industry analysts are convinced that under these conducive circumstances, the Brazilian auto industry will develop rapidly in future.

A Senior Research Analyst at RNCOS said, “The auto sector in Brazil is growing owing to the rapid growth in the economy. The Brazilian automobile industry will offer auto companies better growth prospects combined with growing customer spending and economic stability. Thus, players who wish to invest in the Brazilian automobile industry have vast growth opportunities to explore.”

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