Dow Jones reported that Brazil motor vehicle sales rose to a record in the first quarter as strong economic expansion boosted wages and consumer demand, even as the government moves to cool growth.
The Brazilian Motor Vehicle Manufacturers Association or Anfavea said last week that first quarter sales reached 825,161 units, an increase of 4.7% YoY.
But March sales dropped by 13.5% YoY partly because there were fewer business days as the Carnival holiday fell in March this year as opposed to February last year. March sales were up 11.7% MoM.
The YoY comparison was also affected by a spike in sales in March 2010 as consumers rushed to buy cars before a tax break expired. The government had eliminated the so-called IPI tax on auto sales following the 2008 financial crisis, but that tax cut expired last year.