Automobile output in Brazil rose sharply in May as carmakers lifted production to meet rising demand in export markets that helped offset slower domestic sales, the national automakers' association Anfavea said on Tuesday.
Carmakers produced 309,600 units last month, up 6.6 percent from April and 14.9 percent higher than May 2009, the association said. The output figures underscored expectations that Brazil's economy may be overheating, following better-than-expected first-quarter growth figures unveiled on Tuesday.
Exports surged 27.2 percent month-on-month and were up a hefty 77.5 percent from May 2009 to $1.18 billion, underscoring a nascent rebound in the global economy that has revived demand for cars.
The jump in exports helped offset slower demand in the domestic market, where sales dropped for a second straight month after a boom in the first quarter because of government tax breaks. Vehicle sales fell 9.6 percent from April to 251,100 units, but were up 1.7 percent from May 2009.
Brazil, Latin America's largest economy, is a major market for Italy's Fiat SpA (FIA.MI), Germany's Volkswagen AG (VOWG.DE) and U.S.-based General Motors Co GM.UL and Ford Motor Co (F.N).
Fiat remained the market leader in Brazil in May, selling 54,934 new cars and light trucks, down 6.6 percent from the previous month, while VW sales dipped 1.9 percent month-on-month to 54,605 units.
GM's sales were down 7.3 percent to 46,526 units, while Ford sold 19,984 units, a 27.1 percent slump from April.
