Brazil passenger car sales continue to plummet in April – ANFAVEA

LONDON (ICIS)–Brazil passenger car sales continued to fall sharply in April 2016 year-on-year, dropping by just over a quarter, according to data from Associacao Nacional dos Fabricantes de Veiculos Automotores (ANFAVEA) on Friday.

April 2016 passenger car sales fell by 26.8% compared with April 2015, as political and economic turmoil continued to engulf the country. Falls of more than 25% in year-on-year have become a regular feature of the Brazilian automotive market since the economic downturn began. Passenger car sales in January to April 2016 fell by 26.7% year-on-year.

Inflation in Brazil has currently at a 12-year high and unemployment moving closer to 10%. The IMF estimates that between 2015 and 2017, the country’s economy is expected to shrink 8%, which is more than the contraction Brazil experienced in the early 1980s, Latin America’s so-called “lost-decade.

Brazil passenger car sales

Source: ANFAVEA

The political scandal in Brazil has intensified in recent month with Brazilian President Dilma Roussef now fighting for her political survival after the Chamber of Deputies voted in favour of beginning impeachment proceedings.

President Rousseff is accused of violating fiscal laws by allegedly using funds from state banks to cover budget shortfalls. The Senate commission is due to issue a recommendation today on whether the president should face an impeachment trial.

Additional reporting by Vasiliki Parapouli

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