F Ford Motor Company

By Rogerio Jelmayer

SAO PAULO--New-vehicle sales in Brazil fell drastically in September for the ninth consecutive month as the country's sluggish economy put a damper on consumer confidence.

Sales of cars, light vehicles, trucks and buses plunged 32.5% in September from a year earlier to 200,095 units, the national auto dealers association, known as Fenabrave, said Friday. In the first nine months of the year, sales fell 22.66% to 1.95 million units.

The country's poor economic activity, as well as high inflation and interest rates, is discouraging buyers from making big-ticket purchases, according to economists.

Brazil's economy is expected to contract 2.8% this year, according to economists surveyed by the central bank.

Meanwhile, with official inflation at 9.57%--well above the 6.5% ceiling of the central bank's target range--the monetary authority has increased interest rates aggressively in recent months. The benchmark rate, known as the Selic, is currently at 14.25%.

Falling sales have pushed some auto makers in Brazil to lay off employees, implement voluntary severance programs and force mandatory vacations.

The largest auto makers in Brazil by sales are Fiat Chrysler Automobiles NV (FCAU), Volkswagen AG (VOW.XE), General Motors Co. (GM) and Ford Motor Co. (F).

Complete figures for vehicle sales, production and exports for September and for the first nine months of the year will be released in the next few days by auto-maker association Anfavea.

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

(END) Dow Jones Newswires

October 02, 2015 06:32 ET (10:32 GMT)

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