By Rogerio Jelmayer
SAO PAULO--Vehicle sales in Brazil picked up in October compared
with September, as auto makers continue offering discounts to
whittle down inventories. Still, annual comparisons remain soft
amid tepid consumer demand.
Sales of cars and light vehicles totaled 291,412 units in the
period, up 3.15% from September, but down 7.04% from October 2013,
according to national auto dealership association Fenabrave.
In the first ten months of the year, the sale of cars and light
vehicles dropped 8.7% to 2.69 million units.
Local auto makers have offered a series of discounts to reduce
high inventory levels, as the car industry has suffered amid slack
consumer demand and inflationary pressure. Brazil's gross domestic
product is expected to expand less than 0.5% this year, after a
growth of 2.5% last year. Annual inflation is at 6.62%, above the
central bank's tolerance band of 2.5% to 6.5%.
Amid withering sales performance, some auto makers in Brazil
have resorted to firing employees, voluntary severance programs and
mandatory vacations.
The full figures including auto sales, production and exports,
for October and for the first ten months of the year, will be
released later this month by auto maker association Anfavea.
The largest automakers in Brazil by sales are Fiat Chrysler
Automobiles NV (FCA.MI), General Motors Co. (GM), Volkswagen AG
(VOW.XE) and Ford Motor Co. (F).
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
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