By Rogerio Jelmayer

SAO PAULO--Vehicle sales in Brazil increased in September versus August as automakers promoted a series of price discounts in the period, but the annual comparison remains down as the country's poor economic performance hurt consumer confidence.

Sales of cars and light vehicles totaled 282,519 units in the period, up 9% from August, but down 3.88% from September 2013, according to national auto dealership association Fenabrave.

In the first nine months of the year, the sale of cars and light vehicles dropped 8.8%, totaling 2.4 million units.

In September, local auto makers used a series of discounts in order to reduce the high level of their inventories.

The auto vehicles industry in Brazil is suffering with the country's tepid economic activity and inflation pressures, acting to dull consumer confidence.

Brazil's gross domestic product, which fell into recession in the first half, is expected to expand less than 0.5% this year, after a growth of 2.5% last year. In the meantime, annual inflation is at 6.62%, above the central bank's tolerance band of between 2.5% and 6.5%.

After a decade of strong growth, helped by government incentives, credit expansion and salaries increases, Brazil's car sales last year fell 0.9% to 3.7 million.

With drop in sales, some automakers in Brazil have started to fire employees and adopt voluntary severance programs and mandatory vacations.

The full figures including auto sales, production and exports, for September and for the first nine months of the year, will be released later this month by auto maker association Anfavea.

The largest automakers in Brazil in terms of sales are Fiat SpA (FIATY), Volkswagen AG (VLKAY), General Motors Co. (GM) and Ford (F).

Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com

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