Auto sales rise in January, GM leads market

Brazilian domestic motor vehicle sales advanced by a robust 9.6% in January compared to the same month a year ago, but with production falling 11.4% as dealers sold off inventory, the National Motor Vehicle Manufacturers Association (Anfavea) said Monday.

January sales were 268,273 units, the association said. Sales advanced over 2011 levels as Brazil's unemployment rate declined and incomes continued to rise. Brazilian unemployment hit an historic low of 4.7% in December.

But January production declined against year-ago levels to 211,764 motor vehicles, with dealers selling off inventory to eager consumers.
   
Lower domestic interest rates helped boost demand. Since late August, Brazil's central bank has been systematically reducing its benchmark Selic interest rate, which now stands at 10.5%, down from its 2011 peak of 12.5%.
   
Exports rose by a robust 22.9% in January, against the same month a year ago, to $1.16 billion, Anfavea said.
   
General Motors unseated Fiat as the market leader in January. GM sold 46,337 vehicles in January, while Fiat dropped to third with 42,366 sales. Volkswagen maintained its traditional second place ranking with sales of 42,466. Ford Motor Co. was in fourth place at 17,032.