Car sale continues heated and increases 5.3% in first half of the month
Folha de S. Paulo 03/19/2009
Still without the official announcement of the government on the extension of the term for the reduced IPI (Excise Tax), the car market remains heated. In the first half of March, 118,414 cars and light commercial vehicles were sold, a volume 5.31% higher than the one registered in the same period of 2008. Compared to the first half of February, the licensing increased 8.33%, according to data of the Fenabrave (National Federation of Distribution of Automotive Vehicles). The result, according to the president of the Fenabrave, Sérgio Reze, is due to the lack of a clear signal on the situation of the market after the 31, end of the term for the cut in the IPI, a benefit that made cars up to 7% cheaper. Folha discovered that the Government intends to extend the exemption until June 30, but it will only make the announcement in the end of the month. "Clearly, what took place was that people made their purchases in advance. The consumer does not know what is going to happen yet. And, in case IPI returns to its prior level, the price of the car will increase. According to the president of Fenabrave, without the extension of the term of reduction of the IPI, the sales are likely to suffer a fall of more than 30% in April. "That because the consumer, once facing higher prices, decides to postpone the decision of making a purchase", says Reze. The trucks and buses sector went through a partial recovery. There was a 9.6% increase in the sales in March in relation to February. But, compared to March 2008, the segment registered an 11.74% fall.