Brazil's automobile sales fall 25 percent, registering worst record in 10 years

Automobile sales in Brazil marked the worst record for the first half of 2016 in 10 years, Fenabrave, an association of auto dealers, said.

According to Fenabrave, automobile sales fell by 25 percent in the first half of 2016, compared to the same period last year, according to a recent release from the association.

A total of 951,200 automobiles were sold in the first six months of 2016 in Brazil, down from approximately 1.27 million in the same period in 2015.

No major changes in the industry data would take place unless the political scenario returns to stable, said Alarico Assumpcao Junior,Fenabrave president, in a release announcing the results.

Fenabrave estimates an overall decline of 15.04 percent in automobile, truck, road equipment and motorcycle sales this year.

"We have already taken an improvement in the overall economy and the industry into consideration, and if the economy remains as sluggish as the beginning of the year, the results would be worse," said Alarico.

"Forecasts take into account the difficult economic situation early this year, which negatively affected light vehicle sales," said Antonio Megale, president of Anfavea, the National Association of Motor Vehicle Manufacturers, in a release.

Megale forecasts that due to the favorable foreign exchange rate, exports should increase by 21.5 percent this year, which will help improve the sector's overall results. Endi