Brazil auto sales slipped in February on the return of higher taxes and as the Carnival holiday limited the number of business days, auto-maker association Anfavea said Wednesday.
Sales of cars, trucks and buses reached 235,109 units in February, down 25% from January and 5.8% lower than the year-earlier month, Anfavea said on its website. A cut in the so-called IPI tax on auto sales helped boost sales last year to a record, but with the tax gradually returning this year, consumer enthusiasm has started to wane.
Auto production also declined from January, but improved on a yearly comparison, Anfavea said. Auto output slid 18% from January, in part due to the smaller number of business days, but climbed 5.2% from February 2012.
So far this year, vehicle output is up 18%, thanks largely to a recovery in truck and bus production. Stricter emission standards put in place last year led to a steep dropoff in sales and output, but with numerous infrastructure projects under way in Brazil and forecasts pointing to a strong agricultural harvest, sales and production have been climbing.
Exports, meanwhile, declined from the year-earlier period, while improving from January. Exports reached $1.1 billion in February, down 3.8% from the year-earlier month and up 12% from January. So far this year, export values are down 4.9% thanks to a stronger Brazilian currency and a less favorable product mix.
Write to Paulo Winterstein at [email protected]
Dow Jones Newswires
