Brazil Auto Sales Picked Up in October

By Rogerio Jelmayer

SAO PAULO--Vehicle sales in Brazil picked up in October compared with September, as auto makers continue offering discounts to whittle down inventories. Still, annual comparisons remain soft amid tepid consumer demand.

Sales of cars and light vehicles totaled 291,412 units in the period, up 3.15% from September, but down 7.04% from October 2013, according to national auto dealership association Fenabrave.

In the first ten months of the year, the sale of cars and light vehicles dropped 8.7% to 2.69 million units.

Local auto makers have offered a series of discounts to reduce high inventory levels, as the car industry has suffered amid slack consumer demand and inflationary pressure. Brazil's gross domestic product is expected to expand less than 0.5% this year, after a growth of 2.5% last year. Annual inflation is at 6.62%, above the central bank's tolerance band of 2.5% to 6.5%.

Amid withering sales performance, some auto makers in Brazil have resorted to firing employees, voluntary severance programs and mandatory vacations.

The full figures including auto sales, production and exports, for October and for the first ten months of the year, will be released later this month by auto maker association Anfavea.

The largest automakers in Brazil by sales are Fiat Chrysler Automobiles NV (FCA.MI), General Motors Co. (GM), Volkswagen AG (VOW.XE) and Ford Motor Co. (F).

Write to Rogerio Jelmayer at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires