Vehicle sales grow 5.4% in April, says IBGE

Sales of vehicles and motorcycles, parts and pieces grew 5.4% in April compared with March, according to the monthly survey of Trade released by the Brazilian Institute of geography and statistics (IBGE), on Thursday, 12. The result saved the volume sold by retail enlarged in the period, which had expanded 0.6%.
' This expressive growth of the activity of vehicles can be attributed to the resumption of demand for credit for purchase of vehicles ', justified Nile Lopes, Coordination of technical services and Trade of IBGE.
Lee noted that the Central Bank report pointed to growth in demand for personal loans and for the acquisition of vehicles in April. However, compared to April of last year, the rate of credit growth is much smaller, which helps explain the decline in sales of the activity in this comparison.
The segment of vehicles and motorcycles, parts and pieces recorded 9.8% drop in volume sold in April compared to April 2013, after having already retreated 15.9% in March. There was also the influence of the removal of tax incentives, such as reducing the tax on industrialized products (IPI) and exhaustion of the demand.
' As if sold vehicles? There were certain exhaustion. You can't sell as much as vehicle if sold at that time, it was even quite wide ', said Lee. ' Workers ' disposable income is not as available as well. There is commitment with benefits. They say that what is happening today is that families are giving preference to buying property to escape rent than for purchase of vehicles and appliances ', he added. As a result, retail sales expanded stayed stagnant (0.0%) in April compared with April. (Associated Press)