For the second time this year, light vehicles equipped with flex-fuel technology accounted for 94% of all light vehicle sales in Brazil in August, the highest share recorded since the introduction of flex cars in 2003. The same share was reached for the first time in June of this year.
Numbers released by Brazil’s National Association of Vehicle Manufacturers (ANFAVEA) and compiled by the Brazilian Sugarcane Industry Association (UNICA) show that 221,469 flex vehicles were licensed nationwide in August, compared to 200,396 in August of 2008, an increase of 10.52%. Compared to the previous month, the figures show that while total sales decreased by 9.34% in August compared to July of 2009, the drop in flex car sales was smaller: 9.01%.
“After the crisis at the end of last year and beginning of 2009, and government incentives that followed it like the elimination of federal taxes on industrialized products (IPI), we are slowly returning to a more favorable environment for financing. These elements, plus easier access to credit and consumer perceptions about the benefits of owning a flex-fuel car, combined to produce consecutive sales records for flex vehicles,” says UNICA’s Technical Director Antonio de Padua Rodrigues.
Falling interest rates, with the benchmarc SELIC rate currently at 8.75% per year, and easier credit, were key factors favouring motor vehicle sales. Recent figures released by the National Association of Vehicle Manufacturers’ Financial Companies (ANEF), the balance of CDC (Consumer Direct Credit) portfolios for financing and leasing vehicles to individuals totaled R$ 149.4 billion in July, up 12.3% over the amount recorded in the same month a year ago.
