Brazil Vehicle Sales Rise Above Pre-Pandemic Levels on Govt Push

Government measures to promote the purchase of affordable cars led to an 8.5% increase in vehicle sales in June compared to May, according to the Monthly Trade Survey released by the Brazilian Institute of Geography and Statistics (IBGE).

This growth, the highest since February 2021’s 10.3% increase, marked the first time sales surpassed pre-pandemic levels in over three years.

In June, sales figures for vehicles, motorcycles, parts, and accessories were 4.3% higher than the benchmark set in February 2020, the pre-pandemic threshold.

The closest level prior to this was in March 2023, which was 0.9% below the February 2020 mark.

Year-over-year, the vehicle segment saw a 17.9% sales increase in June 2023 compared to June 2022, marking the most significant growth since July 2021’s 18% rise.

Cristiano Santos, the survey manager, credited the government’s policy of reducing vehicle prices as a major factor for the robust growth.

The vehicle tax reduction program, which took effect on June 6th, contributed to the 8.5% rise in June sales, thereby positively impacting broader retail figures.

This boost in vehicle sales contributed to an overall 1.2% increase in the expanded retail sector in June compared to May. When compared to June 2022, the sector experienced an 8.3% growth.

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