Three members of the emerging BRIC (Brazil, Russia, India and China) economies have posted encouraging auto sales figures for February, it was revealed yesterday (9th March).

According to the latest data from the Society of Indian Automobile Manufacturers, the country's passenger car sales increased by 22 per cent on a year-on-year basis during the month.

Although sales of commercial vehicles were down by over 50 per cent, ten of the 13 automakers saw rises, with Maruti Suzuki, the largest manufacturer, posting record sales and export statistics.

The upturn is being largely attributed to the greater access to bank credit following a move by lenders to cut auto loan rates from around 13 per cent to ten per cent and government tax cuts.

However, companies such as Hyundai Motor India - which reported a 45 per cent rise in domestic sales last week - have been eager to play down the significance of the latest figures.

Spokesman Arvind Saxena told the BBC: "The overall market situation continues to be challenging and not much should be read into the February growth."

Meanwhile, Brazilian national automakers' association Anfavea revealed yesterday that auto sales in the country were up for the third consecutive month in February, helped by government tax breaks.

Sales of new cars and trucks were up by one per cent on a monthly basis to 199,400 units, following previous rises of 1.5 per cent and 9.4 per cent, while output was up 9.2 per cent from January, to 201,700 units.

The news was also positive in China, where a sales increase was recorded for the first time in four months on the back of government tax cuts and various other incentives for consumers.

According to the China Association of Automobile Manufacturers (CAAM), sales of passenger cars, buses and trucks in the world's largest auto market jumped by 25 per cent to 827,600 units.

In addition, the figures show that the total has now risen by 2.7 per cent to 1.56 million in the first two months of the year, in comparison to a 39 per cent slump to 1.35 million vehicles in the US.

Passenger car sales were up by 24 per cent during the month to 607,300, while sales of cars with engines of 1.6 litres of under - which recently had their sales tax slashed in half by the government - rose by 19 per cent over January and February.

The increases are also being attributed to the wider $585 billion stimulus plan issued in Beijing and a subsidisation initiative aimed at encouraging people in rural areas to purchase new cars.

"Consumers are regaining confidence because of the government's stimulus policies," Ricon Xia, an analyst at Daiwa Research Institute in Shanghai, told Bloomberg.

As a result of the positive mood, General Motors has doubled its Chinese market growth forecast for 2009 and Xiong Chuanlin, Vice-President of the CAAM, believes March will bring even stronger figures, according to Bloomberg.



Sources:

India car sales beat global slump (09/03/09)
http://news.bbc.co.uk/1/hi/business/7933768.stm

Brazil auto sales edge up 1 pct in February (09/03/09)
http://uk.reuters.com/article/hotStocksNews/idUKSAQ00025820090309

China February Auto Sales Rise 25% After Tax Cuts (Update1) (10/03/09)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aDCOM2mACDYY&refer=home