Sales of New Vehicles in Brazil Declines 24 Percent

By Lise Alves, Senior Contributing Reporter

SÃO PAULO, BRAZIL – The sales of new vehicles, excluding trucks, buses and agricultural vehicles, declined by 6.36 percent in April in relation to sales in March and by 24.35 percent in comparison to April of 2014, according to Fenabrave (National Vehicle Distribution Federation). According to the entity, during the first four months of 2015 sales of these types of vehicles registered a decline of 18.39 percent in relation to the same period last year.

According to Fenabrave president, Alarico Assumpção Jr., the weak moment faced by the Brazilian economy today has been affecting sales. “Inflation and the Selic [benchmark interest rate] on the rise, the national GDP decreasing, the increase in unemployment, a more restrictive credit and the lack of confidence by consumers have all affected vehicle sales in the country,” explained Assumpção Jr. during a press conference to announce the numbers on Tuesday, May 5th.

The entity’s data is based on the number of vehicle licenses obtained during the period. When one includes buses and trucks, the decline in sales in April in comparison to the same month last year was of 25.19 percent.

Due to the continuing decrease of sales, Fenabrave has revised its sales forecasts for the year. The entity’s estimate now calls for a decline of eighteen percent in vehicle sales in 2015 in comparison to 2014. The previous forecast called for a decline of ten percent.

The declining sales this year have also alerted Brazilian automakers, which have scaled down their production. In April, ANFAVEA (Brazilian Automaker Association) announced that the total volume of vehicles produced during the first quarter of 2015 was 16.2 percent lower than during the same period last year.