Brazil January auto output down but at monthly record

Reuters (São Paulo) - Automobile makers in Brazil had their best January sales on record, national automaker association Anfavea said on Monday, despite a month-over-month drop in vehicles sold.

The figures follow a stellar 2010 for carmakers in which production hit a record high on rising domestic demand and a surge in exports.

January sales fell 35.8 percent from a record high in December, but the 244,900 vehicles sold was still the highest recorded for the month and up 14.8 percent from January 2010.

January's production of 261,800 vehicles was up 6.4 percent from the same month a year ago but fell 9.1 percent from the previous month, the second straight monthly fall in output following a 10.3 percent decline in December, as companies pared production to reduce inventory.

Automobile production in Brazil, Latin America's largest economy, jumped to an all-time high in 2010. Domestic sales have benefited from abundant vehicle lending, while exports were boosted by a rebound in global markets that stoked demand for new cars.

The value of vehicle exports, including trucks and buses, totaled $650 million in January, down 20.1 percent from December and a slight 0.1 percent from a year ago.

Brazil is a major market for global automakers such as Italy's Fiat SpA (FIA.MI), Germany's Volkswagen AG (VOWG.DE) and U.S.-based General Motors Co (GM.N) and Ford Motor Co (F.N).

Volkswagon led sales in January with 54,792 vehicles, followed by Fiat with 46,726 and GM with 41,143.