Newly-released figures which show automobile production is on the rise point to a recovery in the country's car industry.

According to Anfavea, the national automakers' association, automobile production increased for the first time in six months during January.

The 92.7 per cent rise on December levels followed a fall of 34.4 per cent in November 2008 and a further 27.1 per cent decline in the last month of the year.

Production had been hit as automobile manufacturers reduced output in response to dwindling demand, and production is still down 27.1 per cent on last year's equivalent level.

However, demand appears to be stabilising, with new automobile sales in January up 1.5 per cent on December, suggesting the worst of the sector turmoil is over.

Nevertheless, Anfavea president Jackson Schneider refused to predict future sales figures as he believes the sector's buoyancy is still in the balance.

According to Easy Bourse, he told reporters at the group's press conference: "The market is too uncertain to make forecasts now."

Brazil's auto market remains the largest in Latin America.



Sources:

UPDATE 2-Brazil Jan auto output surges, sales gain (09/02/09)
http://www.reuters.com/article/marketsNews/idUSN0950830920090209

Shaky Market Has Brazil Car Assoc Shying Away From 09 Forecast (09/02/09)
http://www.easybourse.com/bourse-actualite/marches/shaky-market-has-brazil-car-assoc-shying-away-from-0--612761

Brazil auto production still lower (10/02/09)
http://news.smh.com.au/breaking-news-business/brazil-auto-production-still-lower-20090210-82j4.html