Fiat reports boom in Brazilian car sales
Fiat’s subsidiary in Brazil has reported an increase in sales as more people bought a car in the country in February.
Tax breaks issued in Brazil led to more people purchasing a vehicle, with Fiat reporting 44,980 cars were bought in February.
It is an increase on January’s sales of 43,312 cars and trucks, with the manufacturer saying the reduction in IPI industrial production tax has led to the boom.
The tax relief in addition to already falling prices has led to vehicle costs reducing by ten to 15 per cent.
Fiat’s increased sales represent the third monthly rise for the company, with other carmakers also reporting a hike in sales.
A spokesperson for General Motors says the company sold 35,700 units last month and 32,840 in January.
However, there are concerns that the re-introduction of the IPI tax on April 1st will lead to increased prices for consumers or the car manufacturers having to absorb the cost.
The boom in car sales follows news that Mitsubishi will move some of its production to its Brazilian base.
