#SalesMay2010

As reported earlier, sales in Brazil in May were a mixed bag. Compared to April, sales slid 9.6 percent (from 278,000 vehicles in April, to 251,000 last month). However, on a year to year basis, sales managed an improvement of 1.7 percent over May 2009. The first five months of 2010 are still going at a record-breaking, best-ever pace (according to Brazilian enthusiast site bestcars.com.br). With the end of incentives clearly causing strain, the question is: How long?

The first numbers are out for May. Sales of new cars dropped 9.66 percent in relation to April. Why? This is the first month in which the full effect of the end of the incentive program was felt. Many dealers however kept up incentive pricing avoiding the 20% drop I had predicted. All is not lost though.