Brazil’s auto market starts to recover 19% year-on-year in June

According to Reuters, light vehicle sales in Brazil increased by 19% year-on-year to 340,300 units in June this year, an increase of 24% from the previous month.

In June this year, Brazil's daily new car sales reached 17,000 vehicles, the highest since November last year. In June, the largest car company in the Brazilian automobile market remained Fiat. In the first six months of this year, the sales volume of light vehicles in Brazil reached 1.6 million, which is basically the same as the same period of last year. Recently, the demand of the Brazilian automotive market has gradually increased. In order to further stimulate consumer demand, the government has introduced a series of measures, including tax incentives, trade protection, and lowering interest rates on loans.

According to the Brazilian Automobile Dealers Association’s Fenabrave statistics, in May this year, car sales in Brazil fell by nearly 10% compared to the same period in 2011, and the decline in sales was mainly due to the increase in the default rate of car loans and the credit shortage in the industry.