Brazilian carmakers raise output by 8.2% in September

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Production came to 282,500 units, against 261,100 vehicles a year earlier.

Carmakers sold 288,100 vehicles in September, down by 7.6% year-on-year.

September’s output and car sales declined respectively by 14.2% and 31.4% compared with August, when the sector hit all-time record highs.

The performance of the Brazilian automotive industry has been strongly influenced by tax incentives, and it is questionable whether sales can be sustained at current levels through the year-end and into 2013, Barclays Capital analyst Leonardo Corrêa said in report on Friday October 5.

“We will wait for the next data points for the sector to have more clarity,” he said.

Brazil’s development, industry and foreign trade ministry, MDIC, on Thursday 4 October launched a new stimulus programme intended to spur investment in the car industry.

Over the next three years, the local automotive sector is expected to receive investment worth $22 billion, according to Brazilian finance minister Guido Mantega.

The auto industry accounts for roughly 35% of domestic apparent flat steel consumption, Corrêa said.