Government incentives drive 7.3% rise in car sales in Brazil

The Brazilian automobile industry witnessed a significant boost in car sales with a 7.3% surge in June, thanks to a government incentive program to reduce the cost of popular vehicles.

According to a survey conducted by Fenabrave, 189,528 vehicles were sold during the period, including cars, light commercials, trucks, and buses.

This represents a combined 14% growth over the past six months.

The breakdown of sales volume in June is as follows: 142,017 cars, 37,674 light commercials, 7,722 trucks, and 2,115 buses.

The surge in vehicle registrations was most notable after June 20, with daily sales exceeding 5,000 units. Towards the end of the month, sales surpassed 22,000 units.

The president of Fenabrave, Andreta Junior, explained that consumers had been waiting for the government announcement regarding the monetary incentive for the automotive sector, resulting in a delay in purchases until June 6.

After the announcement, there were procedures such as invoice exchanges, qualification of manufacturers for tax credits, and fulfilling customer requests.

The initiative aimed to benefit consumers with reduced purchasing power in recent years.

Junior expressed optimism for further growth in July, as the sales made in June but not yet registered are expected to reflect in the coming month.

Fenabrave plans to develop a project to present to the government, ensuring that the sector doesn’t experience a decline in sales after the tax incentive ends.

The president highlighted the government’s willingness to listen to measures promoting economic growth and expressed Fenabrave’s readiness to collaborate in the discussion.

With the initial incentive being successful, they believe that by working together, they can find new alternatives to sustain continuous growth in the automotive market.

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