Lower IPI helps in the recovery of the market
Valor Econômico - 01/20/2009
The sale of new cars improved in the first half of January, pushed upward by the reduction of the Excise Tax (IPI, in Portuguese), in force since the last week of December. The licensing of cars and light commercial vehicles registered 94.5 thousand units in the first two weeks of the year, which represented an increase of 9.15% compared to the same period of December. There was a slight decrease, of 1.22%, compared to the volume of the first half of January of last year. At the end of December, the Government reduced the IPI tax rates as a means to promote the heating of the market again. Mainly the popular models recovered some of the demand lost due to the shrinkage of credit. Retailers recall that with the lower tax the difference in price of a car with an engine of 1.0 litters can get to R$ 2 thousand (US$ 869.6). The sum of light and cargo vehicles - 98.3 thousand units - registered the increase of 6.5% compared to one month ago and a fall of 2.18% compared to the first half of January of last year. The sales of motorcycles also continue reflecting the shortage of credit. In the two weeks of the year, 67.2 thousand units were sold. That is equivalent to a retraction of 2.64% compared to December and 11.31% compared to the first half of the same month of 2008.