Vehicle deliveries in Brazil dropped for a third straight month largely due to tighter credit and a newly imposed higher tax on imports. Both issues are expected to continue to have a negative impact on the market.
Higher tax on imported cars hurt Brazil sales.
March sales of cars and trucks in five South America countries tracked by WardsAuto declined compared with year-ago for the second consecutive month and for the fourth time in the last five months.
Deliveries of light vehicles and medium- and heavy-duty trucks totaled 447,517 units in March, down 1.4% from 453,790 in like-2011.
Thanks to a strong gain in January, sales in the first there months inched pass year-ago to 1.224 million units, up 0.9% from 1.213 million.
But unless results turn around in Brazil, which accounts for roughly two-thirds of the region’s volume, sales soon could trail 2011.
Vehicle deliveries in Brazil dropped for a third straight month in March’s largely due to tighter credit and a newly imposed higher tax on imports. Both issues are expected to continue to have a negative impact on the market.
Venezuela and Uruguay, which combined account for less than 5% of the region’s sales, posted increases in March.
Venezuela’s vehicle deliveries surged 48.1%, following increases of 20.0% in February and 9.7% in January, while year-to-date results jumped 28.9%. This could be the first year since 2007 that the country posts a gain on prior-year. Uruguay’s March sales climbed 8.8%, and results for the first three months rose 3.5%.
Argentina’s string of 28 straight sales gains was broken in March with vehicle deliveries falling 3.6% from like-2011. Year-to-date results grew 5.3% from prior-year.
Rounding out the region, Colombia’s vehicle sales in the month fell 5.5% from a year ago, but its year-to-date total rose 4.0%.