Brazil Auto Sales Surge 32% to Record High

Carmakers sold 405,500 passenger and commercial vehicles in Brazil last month compared with 307,800 units in August 2011, according to auto dealer group Fenabrave.

Sales zoomed past the previous record of 380,000 units set in December 2010. Fenabrave attributes the strong sales to government initiatives that lowered vehicle taxes and eased access to car loans.

The tax breaks were set to expire at the end of August. But last week the government extended them for two more months.

Brazil's sales of heavy-duty trucks dropped 31% year over year to 11,400 units last month. The dealer group says stricter emission standards imposed in January have dampened demand.

Fenabrave has raised its outlook for the full year to an 8% gain in sales to 3.7 million vehicles. The dealer group forecast two months ago that volume would be flat.

Separately, auto sales fell 6% to 75,400 units in Argentina last month, according to dealer group ACARA. The organization predicts 2012 volume will match or slightly exceed the 850,000 vehicles sold last year.